U.S. stocks finished higher on Monday, driven by optimism surrounding potential progress in trade negotiations and a flurry of corporate earnings reports. The Dow Jones Industrial Average rose 300 points, or nearly 0.75%, while the S&P 500 gained 0.6% and the Nasdaq Composite added 0.5%.
The afternoon rally gained momentum after U.S. Commerce Secretary Howard Lutnick told CNBC that a trade deal with an unnamed country was “done,” but awaited approval abroad. Investors interpreted the remarks as a positive signal amid the uncertainty surrounding President Trump’s trade strategy, especially with key partners like China.
However, despite the rally, Trump’s first 100 days in office have been rocky for the markets. The S&P 500 is on track to post its worst performance at the start of a presidency since Richard Nixon’s administration in 1973, marking a challenging period for investors.
Trump’s Executive Order on Auto Tariffs
Earlier, President Trump signed an executive order aimed at easing the burden on automakers by preventing overlapping auto tariffs. The move was seen as a step to reduce the strain on the auto industry, which has been hit by existing tariffs. General Motors, which reported stronger-than-expected earnings, responded by pulling its 2025 guidance and suspending share buybacks, awaiting more clarity on future policies.
Amazon shares also recovered after the company denied rumors of plans to introduce tariff-related surcharges on its platform. The White House had criticized this potential move, calling it a “hostile and political act.”
Earnings Season and Economic Data
Earnings season remains in full swing, with companies like Spotify and Coca-Cola releasing results before the market opened, while Starbucks was set to report after the close. Honeywell saw its shares jump by 5% following a solid earnings beat, contributing to the Dow’s gain.
However, economic data painted a less optimistic picture. Consumer confidence fell for the fifth consecutive month, and job openings remained at a four-year low, signaling concerns over the overall health of the economy.
Bitcoin and Broader Market Sentiment
Bitcoin traded around $95,000, holding steady despite its usual volatility. Investors remain cautious, awaiting more clarity on economic policy, corporate earnings, and trade developments. While the day’s market rally brought some relief, uncertainty continues to loom over the broader economic landscape.
