Due to technology stocks and indications that the Trump administration is implementing tariffs on its trading partners cautiously, Wall Street’s three major indexes reached two-week highs on Monday.
According to media reports over the weekend, the administration of U.S. President Donald Trump is likely to exclude a set of sector-specific tariffs that are scheduled to be implemented on April 2.
With Nvidia up 3.3% and Advanced Micro Devices adding 6.2%, investors snatched up bruised technology equities, sending the overall chip index up 3.1%. Amazon.com increased 2.8%, and Meta Platforms soared 3.2%, among other mega caps.
Chris Zaccarelli, chief investment officer of Northlight Asset Management, discussed the effects of Trump’s shifting trade policy, saying, “We believe the biggest impact is that the uncertainty has at least slowed down or potentially frozen a lot of the business activity.” Additionally, there is a fear that this chilling effect would decrease profitability in the coming quarters.
Over the past several weeks, financial markets have fluctuated as traders have faced concerns of a significant slowdown in the U.S. economy following Trump’s announcement last month of many tariffs on some of its major trading partners, including China, Mexico, and Canada.
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