S&P 500 fights into the green Monday, shaking off jitters ahead of tariff rollout

S&P 500 Fights into the Green Monday, Shaking Off Jitters Ahead of Tariff Rollout

The S&P 500 managed to eke out gains on Monday, shaking off early-session jitters as investors braced for the rollout of new trade tariffs set to take effect later this week. Despite initial weakness, the benchmark index found its footing and turned positive, reflecting resilience in the face of ongoing trade uncertainty.

Market Performance

The S&P 500 closed up 0.4%, marking a modest recovery from early losses. The Dow Jones Industrial Average followed suit, rising 0.3%, while the Nasdaq Composite outperformed with a 0.6% gain, bolstered by strength in technology stocks.

A combination of investor caution and economic optimism kept markets in check throughout the day. While concerns over tariffs initially weighed on sentiment, better-than-expected manufacturing data helped fuel a rebound in equities. The ISM Manufacturing Index for March came in at 52.4, surpassing economists’ expectations and signaling continued expansion in the sector.

Tariff Anxiety and Market Reaction

Investors started the week on edge ahead of the scheduled implementation of additional tariffs on key Chinese imports. The latest round of trade measures, expected to take effect on Friday, has fueled speculation over potential retaliatory actions and their impact on global supply chains.

Despite these concerns, Wall Street found support from comments by Treasury Secretary Janet Yellen, who expressed optimism about ongoing trade negotiations. Yellen noted that while trade tensions remain a challenge, the Biden administration continues to seek constructive engagement with China to mitigate economic disruptions.

Sector Performance

Technology stocks led the market higher, with semiconductor firms posting notable gains amid optimism over sustained demand. Nvidia (NVDA) rose 1.8%, while Advanced Micro Devices (AMD) gained 2.1%.

Energy stocks also rebounded as oil prices climbed, with West Texas Intermediate (WTI) crude rising 1.5% to settle above $82 per barrel. ExxonMobil (XOM) and Chevron (CVX) each posted gains of more than 1%.

Conversely, consumer discretionary stocks lagged as concerns over tariff-related cost pressures loomed over retailers. Walmart (WMT) and Target (TGT) both edged lower on the day, reflecting investor caution ahead of potential pricing adjustments.

Looking Ahead

As the tariff rollout nears, market participants will closely watch for updates from Washington and Beijing. Any indications of last-minute trade talks or policy adjustments could sway investor sentiment. Additionally, upcoming inflation data and the Federal Reserve’s next moves on interest rates remain key focal points for traders navigating an increasingly complex economic landscape.

While uncertainty persists, Monday’s market performance underscores the resilience of equities amid geopolitical and economic headwinds. With earnings season approaching, investors will be looking for corporate guidance on how companies plan to navigate ongoing challenges in the months ahead.