Major United States benchmarks rallied on Monday (Tuesday AEDT), extending their rebound following market turmoil over President Donald Trump’s tariff policies.
The Dow Jones Industrial Average surged 353.4 points, or 0.9%, to 41,841.6, while the S&P 500 advanced 0.6% to 5,675.1. The Nasdaq Composite rose 0.3%, ending at 17,808.7.
Investor sentiment improved following the release of February retail sales data, which, while weaker than expected, alleviated concerns about a sharper slowdown.
Retail sales increased 0.2% on the month, below expectations of a 0.6% gain.
The S&P 500 entered correction territory last week, falling more than 10% from its late February record high. It rebounded 2% on Friday as investors snapped up battered technology stocks.
Despite Friday’s rally, Wall Street still endured a rough week, with the Dow logging its steepest weekly decline since 2023.
The Nasdaq Composite remained in correction territory, down 11% from its peak as of Monday’s close.
Investors continue to grapple with Trump’s unpredictable tariff policies and aggressive corporate cost-cutting measures, including Elon Musk’s restructuring of his DOGE division, which have rattled markets and raised concerns over business and consumer confidence.
Further weighing on sentiment were comments from administration officials signalling a willingness to endure economic pain in pursuit of broader government and trade policy reforms.
Treasury Secretary Scott Bessent sought to reassure investors on Sunday, stating he was “not at all” concerned about the stock market despite volatility stemming from Trump’s tariff threats.
“I’ve been in the investment business for 35 years, and I can tell you that corrections are healthy. They’re normal. What’s not healthy is straight up,” Bessent said on NBC’s “Meet the Press”.
"You get these euphoric markets. That's how you get a financial crisis," he added.
On the bond markets, 10-year yields lost 0.5% to 4.299%, while 2-year yields gained 0.6% to 4.046%.
