Stock Market Update

[BRIEFING.COM] The stock market rallied on optimism that the Trump administration may adopt a more targeted approach to impending tariffs, which are set to come into effect on April 2.

The S&P 500 climbed 1.8%, closing at a two-week high above its 200-day moving average (5,752), while the Dow Jones Industrial Average added 1.4%, and the Nasdaq Composite advanced 2.3%.

Technology stocks led the rally, especially names that sold off to start 2025. Tesla (TSLA 278.39, +29.68, +11.9%) and NVIDIA (NVDA 121.41, +3.71, +3.2%) were standouts in that respect. Tesla shares are still 31.1% lower this year, and NVIDIA has shown a 9.6% decline since the start of the year. 

Positive economic indicators further bolstered sentiment. The preliminary March S&P Global US Services PMI, which increased to 54.3 from 51.0 in February, overshadowed a contraction in the preliminary March S&P Global US Manufacturing PMI, which fell to 49.8 from 52.7 in February.

The robust rally left ten of the 11 S&P 500 sectors higher and eight of them logged gains greater than 1.0%. 

In the bond market, U.S. Treasury yields climbed in a manifestation of increased risk appetite among investors. The 10-yr yield was up eight basis points to 4.33%.

• Dow Jones Industrial Average: +0.1% YTD
• S&P 500: -1.9% YTD
• S&P Midcap 400: -3.3% YTD
• Russell 2000: -5.4% YTD
• Nasdaq Composite: -5.8% YTD

Reviewing today's economic data:

• March S&P Global US Manufacturing PMI - Prelim 49.8; Prior 52.7
• March S&P Global US Services PMI - Prelim 54.3; Prior 51.0

Separately, market participants receive the following data tomorrow:

• 9:00 ET: January FHFA Housing Price Index
• 9:00 ET: January S&P Case-Shiller Home Price Index
• 10:00 ET: March Consumer Confidence 
• 10:00 ET: February New Home Sales