The US markets closed higher on Monday as trader took sigh of bliss after guidance issued by U.S. Customs and Border Protection revealed that the certain tech products such as smartphones and computers as well as other devices and components like semiconductors will be excluded from President Donald Trump's reciprocal tariffs. However, market participant remained cautious as Trump claimed that there was no Tariff 'exception' announced, noting the products are still subject to exiting 20 percent fentanyl tariffs are just moving to a different Tariff 'bucket.' Meanwhile, Federal Reserve Governor Christopher Waller said he expects the tariff impact on inflation to be temporary. He said should there be a small tariff effect on prices, rate cuts would very much be on the table for the latter half of 2025.
On sectoral front, substantial up move has been seen in Biotechnology stocks with NYSE Arca Biotechnology Index surging 2.5 percent, meanwhile, Dow Jones U.S. Commercial Real Estate Index jumped 2.1 percent reflecting strength in commercial real estate stocks. Pharmaceutical, computer hardware and utilities stocks also saw significant strength, closing higher along with most of the major sectors.
Dow Jones Industrial Average jumped 312.08 points or 0.78 percent to 40,524.79, Nasdaq rose 107.03 points or 0.64 percent to 16,831.48 and S&P 500 climbed 42.61 points or 0.79 percent to 5,405.07.
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