US stocks bounced in afternoon trading after Donald Trump signalled that he may offer tariff exemptions to automakers.
The S&P 500 rose more than 1 per cent in afternoon trading, thought it remained below 1.7 percent high it notched earlier in the session. The Nasdaq Composite rose almost 1 per cent, after jumping 2.3 per cent higher earlier on Monday.
Monday’s early gains came after the White House late on Friday excluded smartphones and other consumer electronics from steep tariffs introduced this month. On Sunday, however, administration officials warned the reprieve would be temporary.
Equities ceded early gains but rose again in afternoon trading after Trump said he was “looking at something to help car companies” that make vehicles in North America.
Trump’s erratic tariff swerves have driven huge volatility in markets in recent weeks, with his decision last Wednesday to pause “reciprocal” levies on most countries other than China sparking a huge rally in US equities.
“While uncertainty over Trump’s tariffs is far from over, we think the pause [on key tech products] indicates a sensitivity to market stress from the administration,” said Ulrike Hoffmann-Burchardi, chief investment officer for global equities at UBS Global Wealth Management.
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