On Monday, US stock markets experienced significant gains, driven by optimism that President Donald Trump may adopt a more targeted approach to the impending reciprocal tariffs set to be implemented on April 2 “Liberation Day”. The Dow Jones Industrial Average surged 597.97 points, or 1.42%, closing at 42,583.32. The S&P 500 advanced 1.76% to end at 5,767.57. The Nasdaq Composite climbed 2.27%, finishing at 18,188.59.
Tech giants led the rally, with Tesla shares soaring 11.93%, marking a rebound after nine consecutive weeks of decline. Meta Platforms and Nvidia also posted gains exceeding 3%.
Investor optimism was further fuelled by reports suggesting that the administration’s tariff plans might be less extensive than initially feared, potentially mitigating the risk of a full-blown trade war.
Sectors
The technology sector was a notable beneficiary of the day’s positive sentiment. Additionally, steelmaker Nucor saw its shares rise following an industry upgrade by UBS, which cited potential benefits from tariff protections.
Conversely, Super Micro Computer experienced a decline after a downgrade by Goldman Sachs, attributed to increased competition in the AI server market.
Commodities and the dollar
Brent crude is trading 1.22% higher at US$73.04 a barrel.
Spot gold is trading 0.29% lower at US$3,013.33 an ounce.
One Australian dollar is buying 62.86 US cents.
Australian market poised for gains
The upbeat performance on Wall Street is expected to have a positive impact on Australian markets. ASX 200 futures point to a 36 point rise. This increase follows a modest gain in the Australian market on Monday, where the S&P/ASX 200 edged up 0.1% to 7,937 points.
The financial sector contributed to this uptick, bolstered by solid performances from major banks. However, building materials supplier James Hardie faced a significant setback, with shares tumbling over 14% after announcing a $8.8 billion merger with NYSE-listed AZEK.
Investors will be monitoring upcoming economic indicators, including the federal budget announcement and the monthly Consumer Price Index (CPI) release.
