NEW YORK – March 25, 2025 – U.S. markets soared on Monday, with the S&P 500 closing at its highest level in over two weeks, fueled by strong gains in tech heavyweights such as Nvidia (NVDA) and Tesla (TSLA). The surge came after U.S. President Donald Trump signaled a potentially softer stance on trade tariffs, sparking investor optimism.
Tech Stocks Power the Rally
Nvidia jumped over 3%, while AMD (NASDAQ: AMD) spiked 7%, propelling the PHLX Semiconductor Index up 3%. Tesla led the charge, soaring nearly 12%—its biggest one-day gain since November 2024—as hopes for scaled-back U.S. tariffs boosted the battered EV giant.
Financial markets, which had been volatile in recent weeks due to fears of inflation and economic slowdown from tariff concerns, found some relief.
Key Market Performances
- The S&P 500 surged 1.76% to close at 5,767.57 points, gaining roughly 4% from its March 13 low, but still down 6% from its February record.
- The Nasdaq climbed 2.27% to 18,188.59 points, driven by tech momentum.
- The Dow Jones Industrial Average added 1.42%, closing at 42,583.32 points.
- The Russell 2000, which tracks small-cap stocks, jumped 2.55% to a two-week high.
- The CBOE Volatility Index (VIX), Wall Street’s fear gauge, fell 1.8 points to a one-month low.
Tariff Optimism Eases Investor Fears
Trump’s comments on automobile tariffs and potential exceptions for certain countries offered relief to markets rattled by the recent wave of protectionist policies.
“Investors are experiencing a slight sigh of relief, but at the same time they are cynical about how long this may last,” said Sam Stovall, chief investment strategist at CFRA Research.
“The causes of this manufactured correction have not evaporated. They are tariffs and what the impact of tariffs could be on economic growth, inflation, and corporate profits.”
Broad Gains Across Sectors
Ten of the 11 S&P 500 sectors ended higher:
- Consumer discretionary led with a 4.07% gain, lifted by Tesla’s sharp rebound.
- Communication services followed, rising 2.1%.
- Crypto stocks also rallied as Bitcoin jumped 4%, boosting MicroStrategy (MSTR) by 10% and Coinbase (COIN) by 7%.
Deal-Making and Stock Movements
- Dun & Bradstreet (DNB) climbed 3% after agreeing to a $7.7 billion acquisition by private equity firm Clearlake Capital.
- Lockheed Martin (LMT) dipped 1% following a downgrade by BofA Global Research from “buy” to “neutral”.
Looking Ahead
Investors are now eyeing key economic data this week, including the Personal Consumption Expenditure (PCE) price index on Friday—the Federal Reserve’s preferred inflation gauge—for further clues on the central bank’s next move.
Wall Street’s rally on Monday reflects cautious optimism that a measured tariff approach could ease fears of an economic slowdown, with tech giants and semiconductors leading the charge.
