US Equity Indexes Rise as Likelihood of Trump Going Light on Tariffs Boosts Treasury Yields

01:25 PM EDT, 03/24/2025 (MT Newswires) -- US equity indexes were higher after midday on Monday as expectations that the Trump administration would implement a less strict tariff policy than investors had anticipated sent government bond yields sharply higher.

The Nasdaq Composite rose 1.9% to 18,120.5, with the S&P 500 up 1.6% to 5,755.3 and the Dow Jones Industrial Average 1.2% higher at 42,478.8. All sectors rose intraday, with consumer discretionary communication services and technology leading the gainers intraday.

President Donald Trump is likely to exclude certain sectors from a slate of tariffs scheduled to take effect on April 2, media outlets reported over the weekend. He reportedly said on Friday that there is "flexibility" in his plans for reciprocal tariffs.

Investors are holding out "hope for a more measured approach to US tariffs, while awaiting economic data for clues on the health of the US economy and inflation," a note from D. A. Davidson said Monday referring to the personal income, spending, and price data and the final University of Michigan report on inflation expectations due Friday.

US Treasury yields jumped, with the 10-year yield up 6.3 basis points to 4.32% and the two-year rate up 7.6 basis points to 4.02% after midday.

In economic news, the March flash reading of manufacturing conditions from S&P Global fell to a three-month low reading of 49.8 from 52.7 in February, compared with a smaller expected decrease to a reading of 51.8 in a survey compiled by Bloomberg.

The index indicates contraction, which is in line with the Empire State reading released earlier but in contrast with the Philadelphia Fed manufacturing reading that suggested expansion.

The Chicago Federal Reserve Bank's monthly National Activity Index rebounded to 0.18 in February from minus 0.08 in January, compared with expectations for minus 0.17 in a survey of analysts compiled by Bloomberg.

In company news, Goldman Sachs downgraded Super Micro Computer ( SMCI ) to sell from neutral while adjusting its price target to $32 from $40. Shares of Super Micro were edging 0.6% higher intraday.

Roper Technologies ( ROP ) said Monday that it agreed to acquire CentralReach, an autism therapy software provider, in a $1.65 billion deal it expects to close within the next two months.

West Texas Intermediate crude oil futures increased 0.8% to $68.84 a barrel.

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