S&P 500 Soars Amid Tariff Easing Hopes and Tech Rally

The S&P 500 surged to a two-week high on Monday, driven by gains in Nvidia and Tesla, amid reports of the Trump administration potentially moderating its tariff policies. Financial markets are experiencing volatility due to tariff fears, yet tech shares rebounded, with Nvidia and AMD rallying. The index remains 6% below its February peak.

The S&P 500 saw a significant surge, reaching its highest level in over two weeks, largely due to robust performances by tech giants Nvidia and Tesla. This upswing follows indications that the Trump administration might soften its tariff stance with major U.S. trading allies.

Despite official cautions regarding the fluid nature of these decisions, investors have reacted positively, purchasing distressed tech stocks, leading to a rally for Nvidia and Advanced Micro Devices. Tesla also bounced back, buoyed by optimism surrounding the potential easing of U.S. tariffs.

Volatility continues in financial markets amid inflation concerns and fears of economic slowdown since Trump announced new tariffs last month. The S&P 500 has managed to rebound by approximately 4% from its recent slump, though it remains 6% below its February highs. Despite recent gains, skepticism lingers as companies lower earnings forecasts, citing ongoing tariff uncertainties.

(With inputs from agencies.)