Stocks rose in morning trading (US local time) as Wall Street attempts to navigate uncertainty amid an ongoing trade war. The S&P 500 jumped 1.1%, coming off its first winning week after a four-week losing streak. The Dow Jones Industrial Average rose 0.7%, while the Nasdaq composite gained 1.5%.
Wall Street remains focused on how tariffs could impact inflation, consumer spending, and overall economic growth.
Stocks have been subject to volatility as tariffs are announced, then either implemented or retracted. Meanwhile, genetics testing company 23andMe plunged after announcing it had initiated voluntary bankruptcy proceedings over the weekend.
According to AP, Wall Street was sharply higher before the opening bell on Monday, as the momentum from last week carried over into the new trading week. Futures for the S&P 500 surged 1.1%, while Dow Jones Industrial Average futures rose 0.9%, and Nasdaq futures climbed 1.4%.
Investors focused on corporate news while awaiting updates on US President Donald Trump’s tariffs, which have caused significant market fluctuations in recent weeks. Genetics testing company 23andMe saw its shares drop nearly 42% in premarket trading after revealing it had initiated voluntary bankruptcy proceedings. The company had laid off nearly half of its staff last fall and was winding down clinical trials while assessing “strategic alternatives” for certain assets.
Meanwhile, shares in The AZEK Co. surged 20% before the bell on Monday after the building materials company announced it would be acquired by Australia’s James Hardie Industries in a cash-and-stock deal valued around $8.75 billion. This marked the second large deal in the sector within a week, following QXO Inc.’s announcement on Thursday that it was purchasing Beacon Roofing Supply Inc. for around $11 billion, including debt.
Regarding tariffs, reports suggest President Trump may narrow his broad approach focusing specifically on countries with significant trade surpluses with the US, particularly in Asia. Markets have faced turbulence this year, reacting to each new tariff announcement.
The ongoing trade war between the US and its key trading partners poses a threat to inflation and could negatively impact both consumers and businesses. Trump has set an April 2 deadline for implementing additional tariffs on trading partners, following previous deadlines that were often postponed or canceled at the last minute.
Chinese Premier Li Qiang struck a conciliatory tone in a meeting with business leaders and US Senator Steve Daines, the first US congressman to visit Beijing since Trump took office in January. Li emphasized the importance of dialogue over confrontation, calling for win-win cooperation over zero-sum competition. The meeting also included leaders from major US businesses such as FedEx Corp., Boeing Co., Qualcomm, and Pfizer.
AP’s report also highlighted that recent statements from Trump administration officials suggest that the list of affected countries may not be as broad as initially expected, and existing tariffs, such as those on steel, may not be cumulative. This has sparked optimism in the markets that Trump’s tariff plans may ultimately be less impactful than previously feared.
In international markets, Hong Kong’s Hang Seng gained 0.4% to 23,787.71, and the Shanghai Composite Index rose 0.2% to 3,370.03. In Tokyo, the Nikkei 225 slipped 0.2% to 37,608.49 following a preliminary report showing the fastest pace of manufacturing output decline in a year, accompanied by a sharp drop in new orders. Australia’s S&P/ASX 200 added 1%, closing at 7,936.90, while Korea’s Kospi dropped 0.4% to 2,632.07.
European markets were mostly higher by midday, with Britain’s FTSE 100 up slightly by 0.1%, France’s CAC 40 adding 0.5%, and Germany’s DAX advancing 0.6%. This came after a report showing Germany’s business activity in private sectors hit a ten-month high, with a smaller-than-expected contraction in manufacturing.
