Wall Street started the week with gains, helped along by a rebound in tech stocks following surprise tariff exemptions. The Dow jumped 312 points to close at 40,524. The S&P 500 rose 0.8% and the Nasdaq added 0.6%.
The move followed late-Friday guidance from US Customs and Border Protection, temporarily exempting smartphones, computers, and semiconductors from new tariffs. That news sent Apple up 2.2% and Dell up nearly 4%.
But the optimism was short-lived. Over the weekend, President Trump clarified that these products weren’t exempt — just reassigned to a different tariff category. He warned of further levies under a new “national security” investigation into semiconductors.
Tariff uncertainty drives volatility
Despite the back-and-forth, the market took comfort in the idea that the administration may be stepping back from the harshest tariff proposals. The CBOE Volatility Index, or VIX, dropped more than 6 points, even after one of the wildest weeks on record. Last week, the Dow plunged 1,500 points on two straight days — a first in history — while the S&P posted its third-biggest gain since World War II.
UBS says the outlook remains positive, with rate cuts and structural growth themes supporting equities. They’ve raised their S&P 500 target to 5,800 by the end of 2025.
Automakers surge on possible relief
Auto stocks also surged Monday after Trump said he may offer temporary relief to carmakers hurt by tariffs. Shares in Ford, GM, and Stellantis jumped between 3 and 6%. The President said automakers need more time to localise production and hinted that adjustments may be coming.
Commodities and the dollar
Oil prices closed little changed, but OPEC cut its demand forecast due to trade tensions. WTI crude edged up 0.05% to US$61.53 a barrel. Brent crude rose 0.09% to US$64.82 a barrel.
Spot gold is trading 0.02% lower at US$3,210.34 an ounce.
One Australian dollar is buying 63.23 US cents.
Futures
The SPI futures are pointing to an 18 point rise.
