- U.S. stock markets surged as Trump’s tariff approach appeared less aggressive.
- Tech stocks led gains, with Nvidia and Tesla rising sharply.
- European markets were mixed, with Germany’s business sector rebounding.
U.S. stock markets rallied on Monday, fueled by optimism that President Trump’s upcoming tariffs may be less severe than initially feared. The Dow Jones jumped over 500 points, while the S&P 500 climbed 1.6% and the Nasdaq surged 2%, driven by strong performances in the tech sector.
Meanwhile, European markets reflected a mixed sentiment. The STOXX 600 rose 0.4% following positive economic data, showing eurozone business activity at its highest in seven months.
Tech Stocks Lift Markets Amid Trade Optimism
Investor confidence soared on Monday, with tech stocks leading the market rally. Nvidia and Tesla posted notable gains, with Tesla surging nearly 10% despite its recent struggles. Wall Street reacted favorably to reports that Trump’s tariff measures would be more focused rather than broad-based, easing fears of an economic slowdown.
European markets had a more subdued reaction, with gains in Germany offsetting weaker results from France. Germany’s manufacturing sector expanded for the first time in nearly two years, fueling optimism about economic recovery in the eurozone. However, ongoing inflation concerns kept investors cautious.
Bayer faced a sharp sell-off after a U.S. court delivered a massive $2.1 billion verdict against its Roundup product. This setback adds to the company’s legal woes, further pressuring its stock. Despite this, broader European indices managed modest gains, driven by positive business activity data.
Looking ahead, investors will closely monitor upcoming economic data, including inflation indicators and consumer confidence surveys. These reports will offer further insights into whether the Federal Reserve may adjust its policy stance in response to economic conditions.
The stock market’s positive momentum reflects investor relief over softer-than-expected tariffs, but uncertainties remain regarding global trade tensions and economic recovery.
“The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffett
