(Bloomberg) — Stocks rallied as traders snapped up beaten-down tech shares, while signs that US tariffs will be more targeted than anticipated reduced the appetite for safety. Bonds fell. Oil climbed as President Donald Trump said he would seek a 25% tariff on nations buying crude and gas from Venezuela.
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Wall Street’s risk-on bid lifted equities of nearly all stripes — from small to big caps — in a rebound from a selloff that drove the market from all-time highs and challenged the notion of US exceptionalism. The S&P 500 rose about 1.5%. Tesla Inc. led gains in megacaps, following a slide that put the “Magnificent Seven” technology giants on track for their worst quarter since 2022. A closely watched gauge of chipmakers climbed 3%. The crypto world surged.
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Equity strategists at firms including JPMorgan Chase & Co., Morgan Stanley and Evercore ISI are advising clients that the worst of the recent downturn is likely behind them, citing metrics from investor sentiment and positioning to favorable seasonality.
“Stocks look to continue to rally from oversold levels, and any reduction in potential tariff impacts will be an upward catalyst,” said Ivan Feinseth at Tigress Financial Partners. “I believe we have seen the worst of the market’s pullback, though we will continue to see increased volatility at the beginning of next month based on the outcome of President Trump’s tariff policies.”
The S&P 500 rose 1.5%. The Nasdaq 100 climbed 1.9%. The Dow Jones Industrial Average added 1.1%. A gauge of the Magnificent Seven megacaps gained 2.9%. The Russell 2000 advanced 2%.
The US 10-year yield rose seven basis points to 4.31%. Treasuries also came under pressure with around 10 potential companies looking to raise capital in the investment-grade primary market Monday.
Trump’s coming wave of tariffs is poised to be more targeted than the barrage he has occasionally threatened, aides and allies say, a potential relief for markets gripped by anxiety about an all-out tariff war.
“We said last week that we had already seen ‘peak chaos’ in US tariff policy,” said Thierry Wizman at Macquarie. “Events over the weekend seemed to confirm that regularization and rationalization of tariff policy is coming, followed by negotiations and concessions.”
Countries in the crosshairs of US tariffs are rushing to offer concessions and other defensive responses to White House demands in the final full week before Trump stages trade “Liberation Day.”
The flurry of talks in the run-up to April 2 — when Trump plans to reveal tariffs that offset levies on US goods — reflect the urgency of some of the US’s largest trading partners to convince Trump’s team that they’ll address his grievances over imbalances he said have disadvantaged American workers for decades.
“Yes, tariffs hurt the economy by complicating capex decisions about the future,” said Scott Wren at Wells Fargo Investment Institute. “But today the issue is mainly price increases, which we foresee as incremental and diluted. What’s more, the economy has slowed from 2024, but we think to a sustainable pace.”
The lack of any major tariff news and a dovish outcome from the Federal Reserve last week helped bring buyers back into the market, according to Adam Turnquist at LPL Financial.
On Friday, the S&P 500 halted a stretch of four straight weeks of losses. Since 1928, Turnquist says the end of those streaks has sent the US benchmark gauge up 1.2%, 2.9%, and 4.6% over the subsequent one-, three-, and six-month periods, respectively.
“The US equity pullback has put a dent in US outperformance over the rest of the world,” said BlackRock Investment Institute’s Strategists including Jean Boivin and Wei Li. “We stay overweight US stocks and see opportunities across global stocks.”
Some of the main moves in markets**:
Stocks
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The S&P 500 rose 1.5% as of 1:04 p.m. New York time
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The Nasdaq 100 rose 1.9%
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The Dow Jones Industrial Average rose 1.1%
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The Stoxx Europe 600 fell 0.1%
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The MSCI World Index rose 1%
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Bloomberg Magnificent 7 Total Return Index rose 2.9%
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The Russell 2000 Index rose 2%
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Philadelphia Stock Exchange Semiconductor Index rose 3.2%
Currencies
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The Bloomberg Dollar Spot Index rose 0.1%
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The euro fell 0.2% to $1.0793
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The British pound fell 0.1% to $1.2904
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The Japanese yen fell 0.8% to 150.51 per dollar
Cryptocurrencies
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Bitcoin rose 3.4% to $88,016.48
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Ether rose 4.4% to $2,079.37
Bonds
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The yield on 10-year Treasuries advanced seven basis points to 4.31%
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Germany’s 10-year yield was little changed at 2.77%
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Britain’s 10-year yield was little changed at 4.71%
Commodities
–With assistance from Sujata Rao, Allegra Catelli and Catherine Bosley.
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