Wall Street experienced a substantial rise on Monday.
The three major indices showed a strong upward trend as M7 big tech companies rose significantly, with Tesla’s stock price jumping 12% and Nvidia surging over 3%.
Investor sentiment improved after U.S. President Donald Trump hinted at a more flexible approach to tariff policies.
The tech-heavy Nasdaq climbed more than 2%, while the S&P 500, which broadly reflects market conditions, broke through its 200-day moving average of 5,750, raising expectations for further gains.
The Trump Put
All three major indices posted significant gains.
The Nasdaq surged 404.54 points (2.27%) to close at 18,188.59, while the S&P 500 jumped 100.01 points (1.76%) to finish at 5,767.57.
The Dow Jones Industrial Average, comprising 30 blue-chip stocks, rose 597.97 points (1.42%) to end at 42,583.32.
The CBOE Volatility Index (VIX), often called Wall Street’s “fear index”, dropped 1.80 points (9.34%) to 17.48.
Investor sentiment was boosted by Trump’s change of stance, quietly omitting mention of semiconductor tariffs and stating that tariffs on automobiles and pharmaceuticals would be announced “shortly.”
During a cabinet meeting, Trump stated he would announce reciprocal tariffs on April 2 but indicated a narrower scope of targeted countries and products. He also postponed the announcement of tariffs on automobiles and pharmaceuticals, which was initially scheduled for the same day.
The market rallied on expectations that Trump would boost the stock market by easing tariff policies, the so-called “Trump Put.” This term combines the concept of a put option, which is the right to sell at a predetermined price when the stock price falls, with Trump’s influence on the market.
While “Fed Put” typically refers to the Federal Reserve’s role in supporting the market through interest rate cuts, the “Trump Put” has gained prominence amid uncertainty surrounding the president’s policies.
Upward Momentum
Market analysts have rapidly shifted to a more optimistic outlook.
Goldman Sachs Group, Inc. expressed confidence that the S&P 500 would continue to rise over the next three months.
The fact that the S&P 500 closed above 5,750 is also considered technically significant.
Oppenheimer previously noted that surpassing the 5,750 mark, representing the S&P 500’s 200-day moving average, could signal long-term upward momentum for the market.
Roth Capital Partners also emphasized the importance of breaking through the 5,700 level. Given the recent selling pressure around this point, they anticipate that breaking the line could shift market sentiment from bearish to bullish.
Tesla Surges 12%
Tesla’s stock price soared nearly 12%.
Tesla shares climbed $29.68 (11.93%) to $278.39, marking four consecutive days of gains and a total increase of 23.6% over this period.
Despite remaining down 31% year-to-date, CEO Elon Musk gave confidence to employees about Tesla’s future on March 20, which has positively influenced investor sentiment.
Nvidia’s stock rose $3.71 (3.15%) to $121.41.
The surge came as Trump’s semiconductor tariffs, initially set for April 2, were postponed, and expectations grew that additional export restrictions to China may not be imposed.
The Financial Times reports that the Trump administration is focusing on strengthening regulations in each country to prevent indirect exports of Nvidia’s semiconductors to China rather than further tightening Nvidia’s exports to China.
Apple gained $2.46 (1.13%) to $220.73, while Alphabet rose $3.68 (2.21%) to $169.93.
Microsoft increased $1.82 (0.47%) to $393.08, and Meta Platforms surged $22.60 (3.79%) to close at $618.85.
Amazon also significantly increased, jumping $7.05 (3.59%) to $203.26.
23andMe
Shares of DNA testing company 23andMe were halved.
The sharp decline followed the company’s bankruptcy protection filing in a Missouri federal court the previous evening.
CEO and co-founder Anne Wojcicki immediately resigned, and 23andMe’s stock price plunged $1.06 (59.22%) to $0.73.
Boeing, which secured the contract for the U.S. next-generation fighter jet project named F-47 by Trump, saw its stock rise for the second consecutive day, while Lockheed Martin, which lost the bid, continued to decline.
Boeing shares increased $2.79 (1.57%) to $180.90, while Lockheed Martin fell $4.72 (1.07%) to $434.98.
On March 21, Boeing surged 3.06%, while Lockheed Martin dropped 5.79%.
