US stocks close sharply higher, Nvidia and Tesla rally

NEW YORK - The S&P 500 rose sharply to end at its highest in over two weeks on March 24, lifted by Nvidia and Tesla following signs that the Trump administration might take a more measured approach on tariffs against US trading partners.

US President Donald Trump had anticipated applying broad levies starting on April 2, but a set of sector-specific tariffs is now likely to be excluded, according to media reports over the weekend citing administration officials.

A Trump administration official on March 24 cautioned that the situation was fluid and no final decisions had been made.

Investors scooped up battered technology shares, with Nvidia rallying over 3 per cent and Advanced Micro Devices jumping 7 per cent, sending the PHLX chip index 3 per cent higher.

Tesla surged almost 12 per cent in its biggest one-day gain since early November, recovering some of its recent steep decline, helped by optimism about scaled-back US tariffs.

Financial markets have been volatile in recent weeks due to fears of inflation and an economic downturn after Mr Trump announced a

series of tariffs last month

on major US trading partners, including China, Mexico and Canada.

The S&P 500 has recovered about 4 per cent from its recent low on March 13, and it remains down around 6 per cent from its Feb 19 record high close.

“Investors are experiencing a slight sigh of relief, but at the same time they are cynical about how long this may last,” said Mr Sam Stovall, chief investment strategist at CFRA Research. “The causes of this manufactured correction have not evaporated. They are tariffs and what the impact of tariffs could be on economic growth, inflation and corporate profits.”

Several companies have cited tariff uncertainty as they lowered their forecasts for upcoming quarters. Data compiled by LSEG as of March 21 showed earnings of companies in the S&P 500 are expected to grow by 10.5 per cent in 2025, down by 3.5 percentage points since the beginning of the year.

The S&P 500 climbed 1.76 per cent to end the session at 5,767.57 points. The Nasdaq gained 2.27 per cent to 18,188.59 points, while the Dow Jones Industrial Average rose 1.42 per cent to 42,583.32 points.

The domestically focused Russell 2000 index rose 2.55 per cent to a two-week high, while the CBOE Volatility Index , known as Wall Street’s fear gauge, dropped 1.8 points to a one-month low.

Volume on US exchanges was relatively light, with 13.6 billion shares traded, compared to an average of 16.5 billion shares over the previous 20 sessions.

Ten of the 11 S&P 500 sector indexes rose, led by consumer discretionary, up 4.07 per cent, lifted by Tesla, followed by a 2.1 per cent gain in communication services.

A survey showed US business activity picked up in March, while growing fears over import tariffs and deep government spending cuts continued to weigh on sentiment. Investors are awaiting data this week, including the Personal Consumption Expenditure (PCE) price index - the Federal Reserve’s preferred inflation gauge - on March 28.

Dun & Bradstreet climbed 3 per cent after the data and analytics provider agreed to be acquired by private equity firm Clearlake Capital in a US$7.7 billion deal.

Lockheed Martin fell over 1 per cent after BofA Global Research downgraded the weapons maker to “neutral” from “buy”. Crypto stocks rallied with a 4 per cent rise in bitcoin prices, with MicroStrategy surging 10 per cent and Coinbase adding 7 per cent.

Advancing issues outnumbered falling ones within the S&P 500 by a 5.4-to-one ratio.

The S&P 500 posted 5 new highs and 1 new lows; the Nasdaq recorded 46 new highs and 97 new lows. REUTERS