Stocks opened sharply higher Monday after the Trump administration said late Friday that it would pause reciprocal tariffs on imports of consumer electronic devices such as smartphones and laptops from China.
While some of the buying power briefly faded around lunchtime, it picked back up into the close.
At the end of the trading day, the blue chip Dow Jones Industrial Average was up 0.8% at 40,524, the broader S&P 500 was 0.8% higher at 5,405, and the tech-heavy Nasdaq Composite had added 0.6% to 16,831.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Jeffrey Buchbinder, chief equity strategist, and Adam Turnquist, chief technical strategist at LPL Financial, say that last week's volatile price action helped check many of the boxes that tend to indicate a stock market bottom is in place – including panic selling followed by massive up days.
And the short-term tariff exemptions help to stabilize the price action. However, the uncertainty of where trade policy will be in just a matter of months leaves the market vulnerable to more drawdowns.
With this in mind, the two advise investors to "get your buy orders ready, but be open to the idea of more near-term downside."
Apple stock jumps on tech tariff pause
Apple (AAPL) was one of the more talked-about stock gainers today, adding 2.2% on expectations it will be one of the biggest benefactors from Trump's tech tariff reprieve.
"We believe technology hardware was in the eye of the storm as it pertained to higher tariffs, with AAPL most exposed to intensifying geopolitical pressures," says CFRA Research analyst Angelo Zino.
The temporary exemption goes a long way toward providing better visibility, Zino notes, adding that he no longer anticipates "drastic revenue and earnings per share revisions."
The analyst has a Buy rating on the blue chip stock along with a $235 price target, representing implied upside of 16% to current levels.
Fellow computer-related tech stocks Dell Technologies (DELL, +4.0%), HP (HPQ, +2.5%) and Hewlett Packard Enterprise (HPE, +1.1%) also rose on the news.
Trump considers lifting some auto tariffs
President Donald Trump is also considering pausing some tariffs on car companies, which lifted shares of auto stocks including Ford Motor (F, +4.0%) and General Motors (GM, +3.4%).
Speaking to reporters at the White House, Trump said that he's "looking at something" to help automakers that "need a little bit more time" to shift to domestic manufacturing of parts. The president did not give additional details.
GS stock gains after earnings
While Apple was the best Dow Jones stock today, Goldman Sachs Group (GS) came in second. Shares of the financial stock rose 1.9% after the big bank reported higher-than-expected first-quarter top- and bottom-line results thanks to rising trading revenue.
While Goldman Sachs did not provide forward guidance, CEO David Solomon said he's confident the big bank can maneuver through a second quarter that represents "a markedly different operating environment" than the first.
CFRA Research analyst Kenneth Leon says the big questions for Goldman right now revolve around investing banking delays or declines. He adds that tariff uncertainties could create headwinds in cross-border advisory services.
Still, Leon maintained a Strong Buy recommendation on GS, expecting a strong second half for the firm.
The earnings calendar starts heating up tomorrow with blue chips Bank of America (BAC) and Johnson & Johnson (JNJ) set to report ahead of the open.
Related content
- What Stocks Are Politicians Buying and Selling?
- 10 Major AI Companies You Should Know
- When Is the Next Fed Meeting?
-
The United and JetBlue Partnership: Everything We Know So FarBlue Sky, the United and JetBlue partnership just announced, will give frequent fliers more ways to earn and use miles. Here's what you need to know.
-
Proposed Changes to HSAs in the One Big Beautiful Bill Add up for Retirement SaversHSAs are getting a glow-up in the pending tax bill. Those 55+ and workers enrolled in Medicare Part A will have more opportunity to save for medical costs in retirement.
-
The United and JetBlue Partnership: Everything We Know About Blue Sky So Far
Blue Sky, the United and JetBlue partnership just announced, will give frequent fliers more ways to earn and use miles. Here's what you need to know.
-
How One Widow Nearly Missed Out on $213,000 in Social SecurityLosing your partner often means losing 30% to 50% of your household income. This financial adviser emphasizes that planning ahead and understanding the rules surrounding survivor benefits can help.
-
Simple Ways to Make Your Executor's Job Less of a PainBeing an executor of an estate isn't easy, so you should do what you can to help them out. It can be as easy as making a list and being smart about your email accounts.
-
'Trump Accounts' for Newborns: A Great Idea That Could Be BetterAccording to this financial professional, limitations on the proposed $1,000 deposit at birth highlight shortcomings in our retirement landscape, but the potential is there to make a big difference.
-
Stock Market Today: Stocks Chop as Judges Block Then Reinstate TariffsThe Trump administration has asked for and received a stay in a case that seems headed for the Supreme Court.
-
Opportunity Zones Expert Sees Bright Future in 'Big, Beautiful Bill'New legislation introduces rural "super incentives" and expanded access, though a potential investment freeze could stall billions in community development funding. Here's what every investor needs to know.
-
Sorry, But AI Alone Doesn't Cut It for Financial PlanningArtificial intelligence has its place in retirement planning — but only as a tool. It falls short in several key areas that require a human touch.
-
Five Divorce Settlement Blind Spots: An Expert's Guide to What You Can't Afford to MissEven the best lawyers can miss tax and other financial considerations when drafting complex divorce settlements, so specialist advice is vital from the outset.
