US Markets Rally on Targeted Tariff Plans

U.S. stock markets rallied on Monday following President Trump's indication that planned tariffs set to take effect on April 2 might be more targeted and less extensive than initially feared. The Dow Jones, S&P 500, and Nasdaq all saw significant gains, driven particularly by the performance of tech stocks like Tesla, Nvidia, and Amazon. Reports suggested that reciprocal tariffs may exclude certain sectors, easing market fears of a broad trade conflict. This sentiment was bolstered by strong service sector performance, although manufacturing showed signs of contraction. Additionally, the U.S. Treasury yields rose as investors anticipated a lighter tariff approach, which provided further confidence in the economy. The potential moderation of tariffs and improved market conditions have been seen as a potential lift to U.S. economic growth.