Global Stock Rally Amid Tariff Speculation Sparks Investor Optimism

Global stocks surged on Monday as U.S. stocks led gains and Treasury yields climbed. This came amid reports of President Trump's targeted tariff strategy, boosting risk appetite. Nevertheless, concerns over tariffs and reduced government spending continued to affect investor sentiment.

On Monday, global stocks experienced a robust rally, driven by significant gains in U.S. stocks. This surge was fueled by reports suggesting a more targeted approach in President Donald Trump's tariff strategy, which increased investors' risk appetite.

While investors felt a slight relief from this development, caution remained over the enduring impacts of tariffs on economic growth, inflation, and corporate profits. Recent economic indicators highlighted concerns, with S&P Global's flash Composite PMI Output Index showing an increase, indicating expansion in the manufacturing and services sectors.

Despite the positive market movement, continued unease over tariffs and sharp cuts in government spending kept investor sentiment subdued. Notably, Trump plans to impose new tariffs next week, with uncertainties regarding their extent and target countries continuing to loom over markets.

(With inputs from agencies.)