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Wall Street rides high as Europe stumbles on US tariff tightrope

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European shares dipped Monday, however Wall Street rallied as traders weighed recent U.S. tariffs anticipated subsequent week in opposition to hopes that President Donald Trump would possibly take a extra focused strategy.

Markets have been on edge in current weeks, fearing Trump’s aggressive commerce insurance policies may rattle the worldwide economic system. Attention now turns to subsequent Wednesday – dubbed “Liberation Day” by Trump – when he’s set to unveil a sequence of “reciprocal” tariff measures.

U.S. President Donald Trump delivers remarks, within the Roosevelt Room on the White House, Washington, U.S., March 24, 2025. (Reuters Photo)

Despite the uncertainty, U.S. markets opened sturdy and saved their momentum. By mid-session, the Nasdaq climbed 2%, the S&P 500 rose 1.7%, and the Dow added 1.3%.

“U.S. stock index futures were firmer this morning, indicating a return of investor risk appetite,” stated David Morrison, senior market analyst at Trade Nation.

“The positive start was helped by a more conciliatory tone from President Trump concerning existing tariffs and those threatened in the future,” he added.

Bloomberg News reported that the U.S. administration was contemplating a extra focused strategy to the tariffs, with some international locations being hit more durable than others and the measures not as extreme as initially feared.

That got here after the president informed reporters Friday that “there’ll be flexibility” in his plans.

Those expectations helped European markets open buoyantly Monday. But that sentiment dissipated by the afternoon, with London, Paris and Frankfurt all dropping floor, albeit modestly.

“It’s going to be another choppy week for markets with tariffs once again dominating risk appetite,” stated Danni Hewson, head of monetary evaluation at AJ Bell.

Markets additionally digested buying managers’ index knowledge displaying business exercise within the eurozone elevated for the third consecutive month in March.

The carefully watched survey additionally confirmed U.Ok. business exercise hit a six-month excessive, a glimmer of fine news for Britain’s struggling economic system.

However, optimistic sentiment has been tempered because the U.S. Federal Reserve final week warned of “uncertainty around the economic outlook.”

Asian markets fluctuated via the day, with Tokyo falling whereas Hong Kong and Shanghai rose.

Chinese electrical carmaker BYD’s shares rebounded 3% on news that the corporate made greater than $100 billion in 2024.

Its value had dropped greater than 8% on Friday following a report that the European Commission was conducting a overseas subsidy investigation into its plant in Hungary.

Jakarta dived greater than 4% at one level, extending a current sell-off fueled by worries about Southeast Asia’s largest economic system, which has seen the nation’s fundamental index lose round 15% for the reason that begin of the 12 months.

Gold slid again barely to round $3,010 an oz., having hit a sequence of information final week, peaking above $3,057 amid surging demand for secure havens.

Prices could begin heading the opposite manner, although, in line with Fawad Razaqzada, a market analyst at StoneX.

“Moving forward, the gold forecast may not be as strong as the first months of the year,” he stated. “We think that the pace of buying could at least slow, if not reverse.”

Key figures round 4:45 p.m. GMT

New York

Dow: UP 1.3% at 42,510.24 factors

S&P 500: UP 1.6% at 5,757.84

Nasdaq: UP 2.0% at 18,137.31

Europe

London – FTSE 100: DOWN 0.1% at 8,638.01

Paris – CAC 40: DOWN 0.3% at 8,021.98

Frankfurt – DAX: DOWN 0.2% at 22,856.01

Asia

Tokyo – Nikkei 225: DOWN 0.2% at 37,608.49 (shut)

Hong Kong – Hang Seng Index: UP 0.9% at 23,905.56 (shut)

Shanghai – Composite: UP 0.2% at 3,370.03 (shut)

Currencies

Euro/greenback: UP at $1.0824 from $1.0815 on Friday

Pound/greenback: DOWN at $1.2903 from $1.2918

Dollar/yen: UP at 150.58 yen from 149.36 yen

Euro/pound: DOWN at 83.62 pence from 83.72 pence

Commodities

West Texas Intermediate: UP 0.9% at $69.20 per barrel

Brent North Sea Crude: UP 0.9% at $73.06 per barrel

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