US stocks rose on Monday as traders reacted positively to President Donald Trump’s announcement of exemptions for tariffs on smartphones, computers, and electronics imported from China. The Dow Jones Industrial Average gained 312 points, or 0.78%, while the S&P 500 rose 0.79% and the Nasdaq Composite added 0.64%.
The exemptions come after Trump imposed a tariff rate of 145% on imports from China in mid-April. However, Commerce Secretary Howard Lutnick clarified that these exemptions do not apply to the 20% tariff on imports related to the fentanyl trade.
Trump also announced consideration for a short-term tariff exemption for automakers, which could benefit companies like Ford (F), Stellantis (STLA), and General Motors (GM). These stocks surged more than 3% after Trump’s comments.
The gains in US stocks followed rallies overseas, with European markets rising across the board. The news also came as new survey data showed mounting pessimism among consumers about the short-term outlook for the economy, with near-term inflation expectations jumping to 3.6%.
Analysts at UBS and Morgan Stanley expressed caution, noting that while a temporary reprieve is beneficial, it’s not a substitute for tariff removal. Goldman Sachs CEO David Solomon also warned of a “markedly different operating environment” than earlier this year, citing growing concerns about economic activity slowing down.
As investors look ahead to the week, they’ll be watching the Treasury market, which has been volatile in recent days. US Treasuries gained slightly on Monday, while the yield on the 10-year Treasury note hovered around 4.38%. The dollar index slid 0.4% on Monday, and oil prices held steady after OPEC’s monthly report slightly lowered its forecast for global oil demand growth this year.
Source: https://edition.cnn.com/2025/04/14/investing/us-stock-market/index.html