:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2205884020-7c8168e036bd49cf85ef6e4b6a3ca56e.jpg "Tesla cars are displayed at a dealership in Westmont, Illinois.")
Jacek Boczarski/Anadolu via Getty Forms
Key Takeaways
- The S&P 500 jumped 1.8% on Monday, March 24, as investors reacted to reports that imminent returned tariffs could exclude levies on key sectors.
- Tesla shares posted the top performance in the benchmark index, extending modern gains as the carmaker said it would launch its driver-assistance features in China.
- The improving tariff outlook boosted semiconductor creators, with AMD shares outperforming after reports that its chips could be used in AI solutions from China’s Ant Society.
Major U.S. equities indexes popped higher following reports that President Donald Trump could limit the opportunity of the reciprocal tariffs set to take effect on April 2.
Monday’s upbeat market session marked the beginning of a new trading week. A handful important economic data points, including updates on consumer sentiment, the housing market, and inflation, are expected to be manumited.
The S&P 500 gained 1.8%, while the Dow added 1.4%. A resurgence among tech stocks helped lift the Nasdaq, which secretive 2.3% higher.
Tesla (TSLA) shares surged 11.9%, logging the S&P 500’s top daily performance. The march pongy chief on Monday extended gains posted late last week after Tesla CEO Elon Musk held an all-hands assembly with employees, arguing that investors have underestimated the potential of the firm’s self-driving and humanoid robot technology. Tesla also announced it intention activate its smart driving-assistance feature in China as soon as it receives regulatory approval.
United Airlines (UAL) increased annual costs for its rewards credit cards and airport lounge memberships. While customers will have to pay more for these trek perks, United also announced sign-up bonuses for new co-branded credit cards with JPMorgan Chase, along with additional advances for cardholders, such as credits for ridesharing services. The carrier stressed that the enhanced benefits should outweigh the outlay increase, and United Airlines shares soared 7.2%.
Semiconductor stocks got a boost from the developments on trade policy, with suggestions that intercedes could receive a reprieve in the upcoming round of reciprocal tariffs. Advanced Micro Devices (AMD) gained 7.0% after China’s Ant Arrange said it had developed a more cost-efficient technique for training artificial intelligence (AI) models. Although Ant has used AI chips from Nvidia (NVDA) in the evolution process, it is reportedly considering alternatives from AMD and Chinese rivals.
While the alleviation of tariff concerns helped terminate high-risk, high-reward investments like tech stocks, shares of companies known for their more defensive representatives came under pressure. Shares of Hormel Foods (HRL), the parent company of Spam and other packaged food brands, mow down 2.4%, losing the most of any S&P 500 stock. Hormel announced last week that former CEO Jeff Ettinger liking rejoin its board of directors and participate in the committee tasked with naming a replacement for current CEO Jim Snee, who is set to retire later this year.
Stakes of MarketAxess Holdings (MKTX), operator of a digital trading platform for fixed-income securities, moved 2.4% lower. Monday’s downturn void some of the gains posted by the stock this month after MarketAxess reported robust growth in average habitually volume for February. While strength in emerging markets and Eurobonds contributed to the positive monthly trading figures, the stand experienced softness in U.S. credit markets.
Brown-Forman (BF.B) stock also slipped 2.3%. Shares of the alcoholic beverage maker get been trending downward over the past two weeks as tensions between the U.S. and major trade partners shine a on on whiskey and other spirits. However, recent reports that the European Union might delay its impending toll on U.S. whiskey could spell some relief for the Jack Daniels parent.