US Markets Show Resilience Ahead of Tariff Deadline

In a surprising turn of events, the US stock markets closed mostly higher on Monday, with the Dow Jones Industrial Average jumping a remarkable 418 points, or 1.01%. This rally comes as investors digest the implications of upcoming 25% tariffs on all vehicles manufactured outside the US, effective April 2. The S&P 500 also saw gains, rising by 0.55%, while the Nasdaq 100 remained flat, showcasing the market's mixed reactions to the impending policy changes.

Investors Brace for Impact of Reciprocal Tariffs

Adding to the market's anticipation, US President Donald Trump announced that reciprocal tariffs targeting all countries will be unveiled on Wednesday. This move has stirred uncertainty among investors and analysts alike. John Williams, President of the Federal Reserve Bank of New York, commented on the unpredictability of these tariffs' effects, stating it's too early to gauge their full impact on the economy.

Currency Markets React

Meanwhile, the euro experienced a slight decline against the dollar, trading 0.15% lower at $1.08149 by late afternoon ET. This subtle shift reflects the broader financial markets' cautious stance as the tariff deadlines loom.