Wall Street soared Monday, kicking off the week in full risk-on mode as investors welcomed signs of easing trade tensions and stronger-than-expected economic data.
President Donald Trump‘s softer tone on potential tariffs ahead of the looming April 2, 2025 deadline helped calm nerves. Adding to the optimism, fresh business surveys showed a strong rebound in services activity in March, easing recession worries.
U.S. economic activity accelerated in March, with the Composite Purchasing Managers' Index (PMI) rising rom 51.6 in February to to 53.5. Services PMI jumped to 54.3 -- well above consensus forecasts of 50.8 and sharply higher than the prior month's 51.0 reading. Yet, the report also flagged a notable uptick in cost pressures, as businesses reported growing concerns over input prices, likely linked to heightened speculation around potential tariff measures.
The S&P 500 jumped 1.75% by midday in New York, on track for its best one-day performance since mid-January. The Nasdaq 100 rallied 2%, mirroring gains from March 14 -- the index's strongest day since early November 2024.
Small caps outperformed their large-cap peers, underscoring the market's improving risk appetite. The Russell 2000 surged 2.8%, marking its best session since the post-election rally on Nov. 6, 2024.
Tesla Inc. (NASDAQ:TSLA) led the charge on both the S&P 500 and Nasdaq 100, soaring 9.8%, on track for its sharpest one-day gain since early November.
All seven mega-cap tech stocks posted solid gains, with the Roundhill Magnificent Seven ETF (NYSE:MAGS) climbing 2.9% after Friday's 1.4% rise, setting up what could be its strongest two-day advance since early January.
Every S&P 500 sector, except utilities, traded in positive territory, with consumer discretionary and technology leading the pack.
The U.S. dollar index edged higher, eyeing a fourth consecutive session of gains. Meanwhile, Treasury yields spiked across the curve as investors rotated out of safe-haven assets. The 10-year yield jumped seven basis points to 4.32%, while the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) dropped 0.9%.
Gold pulled back 0.3% to $3,014 per ounce, on pace for its third straight decline, as investors favored riskier assets.
Oil prices gained 1.5% after Trump threatened a 25% tariff on countries importing Venezuelan crude.
Crypto-related assets also rallied. Bitcoin (CRYPTO: BTC) climbed 2.7% to $88,400, while MicroStrategy Inc. (NASDAQ:MSTR) jumped 7.4% and Coinbase Global Inc. (NASDAQ:COIN) rose 6.2%.
Monday’s Performance In Major U.S. Indices, ETFs
| Major Indices | Price | Chg (%) |
| Russell 2000 | 2,104.07 | 2.3% |
| Nasdaq 100 | 20,160.42 | 2.1% |
| S&P 500 | 5,762.34 | 1.7% |
| Dow Jones | 42,589.04 | 1.4% |
According to Benzinga Pro data:
- The SPDR S&P 500 ETF Trust (NYSE:SPY) rose 1.8% to $573.92.
- The SPDR Dow Jones Industrial Average (NYSE:DIA) rose 1.3% to $425.30.
- The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) rallied 2% to $490.39.
- The iShares Russell 2000 ETF (NYSE:IWM) soared 2.4% to $208.59
- The Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY) outperformed, up 2.7%; the Utilities Select Sector SPDR Fund (NYSE:XLU) lagged, down 0.2%.
Monday’s Stock Movers
- Shares of Chinese electric-vehicle giant BYD Co. Ltd. (OTCPK: BYDDY) rallied 5.5% in over-the-counter markets amid stronger-than-expected quarterly earnings. The carmaker is now up 60% year-to-date.
- Shares of Advanced Micro Devices Inc. (NASDAQ:AMD) soared 7.3%, eyeing their biggest one-day jump since February 2024, as Chinese conglomerate Ant Group is increasingly shifting to domestic and AMD chips amid exports controls.
- Airline and travel-related stocks rallied substantially amid easing recession fears. United Airlines Holdings Inc. (NASDAQ:UAL), Delta Air Lines Inc. (NYSE:DAL) and Royal Caribbean Cruises Ltd. (NYSE:RCL) were up 5.7%, 4.2% and 4%, respectively.
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