Market Surge: S&P 500 Climbs with Nvidia and Tesla Leading the Charge

The S&P 500 reached a two-week high, driven by gains in Nvidia and Tesla, amidst hopes of a less aggressive U.S. tariff policy. Volatility continues as market investors remain concerned about tariffs' impacts on economic stability. Tech stocks led the recovery while overall trading volume was light.

The S&P 500 marked a significant rise, finishing at its strongest point in over two weeks, fueled by gains from Nvidia and Tesla. The optimism was bolstered by reports suggesting that the Trump administration might employ a more refined approach to tariffs, deviating from initial plans of broad levies against U.S. trade partners.

Despite these positive movements, a Trump administration official warned of the unpredictability of the situation, stating no final decisions on tariffs had been reached. Meanwhile, technology stocks saw a resurgence, with Nvidia climbing over 3% and Advanced Micro Devices leaping 7%. This helped elevate the PHLX chip index by 3%.

Tesla's stock soared nearly 12%, marking its biggest single-day gain since November, aided by growing optimism regarding U.S. tariffs. The financial markets continue to experience volatility due to inflation worries and economic downturn concerns stemming from previously announced tariffs targeting major trading partners like China, Mexico, and Canada.

(With inputs from agencies.)