The New York stock market continued its upward trajectory on Monday.
Investors were somewhat reassured by the weekend announcement of a delay in tariffs on electronic products and U.S. President Donald Trump indicating a flexible approach to semiconductor tariffs.
During a summit with El Salvador President Nayib Bukele on Monday, Trump also hinted at the possibility of postponing automobile tariffs to reporters.
Two-day Rally
The New York stock market posted gains for the second consecutive trading day, following the uptick on April 11.
The Dow Jones Industrial Average closed up 312.08 points (0.78%) at 40,524.79, while the S&P 500 finished 42.61 points (0.79%) higher at 5,405.97.
The Nasdaq ended the day up 107.03 points (0.64%) at 16,831.48.
The CBOE Volatility Index (VIX), often referred to as Wall Street’s fear gauge, plummeted 6.67 points (17.76%) to 30.89.
Investor anxiety eased considerably as Trump, who had previously advocated aggressive tariff policies, postponed various tariffs and yielded to economic realities.
However, signs of market fatigue were evident.
Early gains exceeding 1% narrowed to around 0.7% by the afternoon, suggesting that investors are growing weary of Trump’s erratic approach to trade policy.
Mixed Results for M7
The day’s market gains were not led by the major tech companies known as the Magnificent Seven.
In fact, more M7 stocks fell than rose.
Buoyed by news of the electronic product tariff delay, Apple surged $4.37 (2.21%), while Alphabet rose $2.07 (1.30%) to close at $161.47.
Tesla fluctuated throughout the session but barely managed to close higher, closing up $0.04 (0.02%) at $252.35.
On the other hand, Microsoft (MS) dipped $0.64 (0.16%) to $387.81, and Meta Platforms tumbled $12.09 (2.22%) to $531.48.
Amazon also finished down $2.75 (1.49%) at $182.12.
Nvidia’s performance was erratic throughout the day.
With Trump expected to announce semiconductor tariffs soon, he signaled a company-specific flexible approach, leading to mixed investor sentiment.
Ultimately, Nvidia closed down $0.22 (0.20%) at $110.71.
Automotive and PC Sectors Shine
The day’s biggest performers were the traditional U.S. automakers, known as the Detroit Big Three.
The Big Three’s stock prices soared after Trump suggested he may postpone auto tariffs, stating that relocating the auto supply chain from Canada and Mexico to the U.S. would take time.
Stellantis, a joint venture between the U.S., Italy, and France, saw the largest increase, soaring $0.50 (5.64%) to $9.37.
Ford jumped $0.38 (4.07%) to close at $9.71.
General Motors rose $1.51 (3.46%) to $45.14.
Electronics-related stocks also posted significant gains.
PC manufacturer Dell Technologies surged $3.26 (3.98%) to $85.19, while HP finished up $0.60 (2.56%) at $24.04.
Electronics retailer Best Buy also closed up $1.33 (2.20%) at $61.76.
