Wall Street rises as tariff concerns subside

Wall Street surged on Monday as optimism grew that the Trump administration might take a more selective approach to tariffs, easing fears of a full-scale trade war. The S&P 500 jumped 1.80% to reach a two-week high, while the Nasdaq 100 gained 2.10% and the Dow Jones climbed 597 points. Tech stocks led the rally, with Nvidia and AMD rising 3.10% and 7%, respectively, while Tesla rebounded 11.90% after a series of declines.

In Europe, the DAX erased early gains to close slightly lower at 22 853, as investors analysed business activity data from major European economies and kept an eye on US trade policy developments. Reports suggested that upcoming US tariffs would be more focused and less severe than initially feared. However, President Donald Trump announced plans to impose duties on autos, aluminium and pharmaceuticals. Meanwhile, Germany’s private sector saw its strongest business activity growth in ten months, fuelled by a recovery in manufacturing production—the first in nearly two years. The FTSE 100 also ended slightly down at 8 638, as traders weighed US tariff concerns against a mixed UK PMI report.

In Asia, the Nikkei slipped 0.18% on Monday, closing at 37 608.49—marking its third consecutive decline—as concerns over President Donald Trump’s April 2 deadline for reciprocal tariffs dampened sentiment. Meanwhile, the Hang Seng closed at 0.93% (23 911.13), recovering from a subdued morning session. The rally was fuelled by strong gains in US futures after the Trump administration hinted at potential “flexibility” in tariffs ahead of the 2 April 2025 deadline. Markets also responded positively to Premier Li Qiang’s renewed commitment to proactive macroeconomic policies.

In South Africa, the FTSE/JSE All Share Index declined 0.60% on Monday, while the rand strengthened, gaining over 1% to trade at R18.17/$ by 18h00. Meanwhile, retail confidence dipped slightly in the first quarter of 2025, falling from 54% to 50%, according to the Bureau for Economic Research (BER). Despite the decline, confidence remains well above the long-term average.

Brent crude oil futures approached $73 per barrel, the highest in over three weeks, after President Trump proposed a 25% tariff on any country purchasing Venezuelan oil, intensifying tensions with the Maduro regime. China, a key buyer of Venezuelan crude, is expected to be significantly affected. Gold declined by 0.39%, closing at $3 014.06 per ounce.