Dow rallies 400 points to start week on hopes Trump is softening tariff stance: Live updates

Stocks jumped Monday on reports that President Donald Trump may hold back from implementing some of his wide-ranging tariff plans, raising hopes the U.S. will avoid plunging the world into an all-out trade war.

The Dow Jones Industrial Average jumped about 475 points, or 1.1%. The S&P 500 added 1.4%, while the tech-heavy Nasdaq Composite gained roughly 1.9%.

Shares of Tesla, which have fallen nine straight weeks, were up more than 9%, adding to its Friday gains. Meta and Nvidia each climbed about 3%.

Investors remain jittery over a potential slowdown in U.S. economic growth ahead of Trump’s April 2 start date for reciprocal tariffs, which he has said are aimed at any country that imposes duties on U.S. imports.

Trump announced on Monday that the U.S. will impose 25% tariffs on countries that buy oil and gas from Venezuela, effective April 2. Later in the session, Trump told the press following a cabinet meeting that tariffs on sectors like pharma and autos would still be coming in the “near future.”

But sentiment appears uplifted on news that the tariffs could be more narrow in scope and that sector-specific tariffs are expected to be delayed, according to a report from the Wall Street Journal that cited an administration official. Trump will also exclude some nations from the tariffs, Bloomberg News reported. These plans are fluid and could change, however, both reports said.

Trump on Friday told reporters that there could potentially be “flexibility” for his reciprocal tariff plan, which had helped push major averages into the green for the session and avoid four straight weekly losses for the S&P 500.

“Market conditions are improving dramatically as the angst around reciprocal tariffs is somewhat diminishing. From a risk standpoint, escalation or retaliation has always been a concern, but should the administration come through with a more targeted and tactical strategy around tariff implementation, risks of a full-blown trade war are reduced,” said Charlie Ripley, senior investment strategist at Allianz Investment Management. “We see this as a potential lift to growth in the U.S., should reciprocal tariffs come in a more watered-down form.”

In recent weeks, the pending duties and Trump’s overall rhetoric on U.S. trade policy have raised fears among investors that the U.S. economy could be on shaky footing. These concerns were exacerbated by weakening consumer sentiment data. Stocks rapidly fell starting in late February with the S&P 500, at one point, closing in correction territory.

However, investors received some encouraging words from Federal Reserve Chair Jerome Powell last week after he said that any potential negative impacts from Trump’s tariffs will likely be short-lived. On the data front this week, investors will receive a consumer confidence reading on Tuesday, followed by initial weekly jobless claims figures on Thursday.

After last week’s small gain, the S&P 500 sits 7.8% off its record high. The Nasdaq Composite also snapped a four-week losing streak last week with a small gain and sits 12% off its record high.