Expectations are growing that the mutual tariff policy announced by the Donald Trump administration may be applied more flexibly than anticipated, leading to a rise in the New York stock market.
On this day, the Dow Jones Industrial Average on the New York Stock Exchange (NYSE) finished at 42,583.32, up 597.97 points (1.42%) from the previous trading day. The Standard & Poor's (S&P) 500 index gained 100.01 points (1.76%) to close at 5,767.57, while the tech-heavy Nasdaq index ended up 404.54 points (2.27%) at 18,188.59.
Investor sentiment improved as President Trump hinted that some mutual tariff targets could be reduced. Trump said on this day, "I may give exemptions to a lot of countries" and noted, "I may impose tariffs lower than what they charge."
The Wall Street Journal (WSJ) evaluated that "the mutual tariffs appear to be more targeted (at certain countries) than initially expected, resulting in a rise in the stock market."
Major tech stocks also rebounded. Tesla surged 11.93% on the back of eased trade war concerns and comments from CEO Elon Musk telling employees, "Don't sell your shares." Stocks like Nvidia (3.15%), Meta (3.79%), and Alphabet (2.25%), which had recently seen significant declines, also ended the day strong.