Equity Markets Rise as Traders Track Tariff Updates; Yields Slump

04:51 PM EDT, 04/14/2025 (MT Newswires) -- US benchmark equity indexes closed higher for a second straight session, while Treasury yields tumbled, as markets tracked tariff updates.

The S&P 500 and the Dow Jones Industrial Average rose 0.8% each to 5,406 and 40,524.8, respectively. The Nasdaq Composite added 0.6% to 16,831.5. The three indexes closed higher Friday as the White House said President Donald Trump was optimistic about striking a trade deal with China.

Barring consumer discretionary, all sectors posted gains Monday, led by real estate and utilities.

Trump has exempted smartphones, computers and semiconductors from his reciprocal tariffs, CNBC reported, citing Customs and Border Protection guidance issued late Friday. However, Trump said in a social media post Sunday that there are no tariff exceptions. Last week, Trump announced a 90-day pause for certain tariffs for non-retaliating countries, while boosting duties on China to 145%.

Shares of Apple ( AAPL ) , which is heavily reliant on China for manufacturing, jumped 2.2% Monday, among the best performer on the Dow.

Trump said Monday he's looking to "help some of the car companies" as they need some time to move production to the US, CNBC reported. Ford Motor ( F ) shares rallied 4.1%, while General Motors ( GM ) gained 3.5%. Stellantis ( STLA ) increased 5.6%.

While inflationary headwinds from higher tariffs are likely to be temporary, their effects on employment and output could be "longer-lasting," Federal Reserve Governor Christopher Waller said.

"If the slowdown is significant and even threatens a recession, then I would expect to favor cutting the (Federal Open Market Committee's) policy rate sooner, and to a greater extent than I had previously thought," Waller said. "The new tariff policy is one of the biggest shocks to affect the US economy in many decades."

US Treasury yields moved down Monday, with the 10-year rate tumbling 10 basis points to 4.39% and the two-year rate decreasing 9.6 basis points to 3.86%.

US consumers forecast higher inflation a year from now, while five-year expectations ticked down, a survey by the Federal Reserve Bank of New York showed Monday.

Goldman Sachs' ( GS ) first-quarter results surpassed Wall Street's views as equities-trading revenue reached record levels. The investment bank's chief executive, David Solomon, said that market volatility is expected to continue. Goldman shares increased 1.9%.

DaVita ( DVA ) said that some of its operations were affected by a ransomware incident that occurred Saturday. The company's shares fell 3%, the second-biggest decline on the S&P 500.

West Texas Intermediate crude oil rose 0.2% to $61.63 a barrel Monday.

The Organization of the Petroleum Exporting Countries cut its global oil demand projections for 2025 and 2026 amid macroeconomic uncertainties tied to the US government's tariffs. The cartel also lowered its world economic growth outlooks for 2025 and 2026, including those for the US.

Gold dropped 0.6% to $3,226.30 per troy ounce, while silver rose 1.1% to $32.24 per ounce.

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