Wall Street indices firm in green as hopes of softer Trump tariffs grow; Nasdaq leads with 2% gains

Despite the gains, the Nasdaq Composite index is still down 12 percent from its peaks.

Wall Street indices held on to early gains as of mid-trade on March 24 as investor concerns over a global trade war eased amid reports that President Donald Trump may scale back some of his planned tariffs.

The Dow Jones Industrial Average jumped 1.2 percent, while the S&P 500 gained 1.5 percent. The Nasdaq Composite led the rally, climbing nearly 2 percent.

Tesla extended gains from the previous session and soared over 7 percent, snapping a nine-week losing streak, while Meta and Nvidia gained 4 percent and nearly 2 percent, respectively. Markets had been on edge ahead of Trump’s 2 April deadline for imposing reciprocal tariffs. However, reports from The Wall Street Journal and Bloomberg News suggested that the scope of the tariffs might be narrower than expected, with industry-specific exemptions and certain nations excluded.

Adding to the optimism, Trump hinted at potential 'flexibility' in his tariff plan last Friday, helping markets close last week on a positive note. While concerns about a slowing US economy persist exacerbated by weaker consumer sentiment data, Federal Reserve Chair Jerome Powell reassured investors that any negative impact from tariffs is likely to be short-lived.

The rally extended last week’s gains, pulling the S&P 500 out of correction territory as it now sits 7.8 percent below its record high. However, the Nasdaq Composite, despite breaking a four-week losing streak, remains 12 percent off its peak.

Looking ahead, investors will watch for consumer confidence data on Tuesday and weekly jobless claims on Thursday for further insights into the economy’s trajectory.