US close: Stocks firmer on hopes of tariff scale-back
By Josh White
Date: Tuesday 25 Mar 2025
(Sharecast News) - Wall Street rallied on Monday, buoyed by encouraging geopolitical and economic developments.
At the close, the Dow Jones Industrial Average was up 1.42% to 42,583.32, while the S&P 500 advanced 1.76% to 5,767.57.
The Nasdaq Composite outperformed, rising 2.27% to close at 18,188.59.
Investors responded positively to reports that the Trump administration could scale back the scope of its planned 'Liberation Day' tariffs set for 2 April.
The prospect of a more measured trade approach helped ease fears of a wider economic disruption.
On the geopolitical front, sentiment was lifted by signs of diplomatic progress in the Russia-Ukraine conflict.
Ukrainian defence minister Rustem Umerov described talks with US officials on Sunday as "productive and focused".
"It's going to be another choppy week for markets with tariffs once again dominating risk appetite," said AJ Bell head of financial analysis Danni Hewson.
"On Wall Street the potential that Donald Trump may choose to target specific sectors with his 2 April tariffs has lifted sentiment, with tech stocks and US automakers enjoying a revival.
"But the US president has a habit of rewriting the rule book even after it's gone to print and today's addendum with regard to Venezuelan oil and gas is a reminder that the administration has its own agenda."
US business activity expands in March
In economic news, US business activity expanded in March, driven by strength in the services sector, even as manufacturing slipped and confidence in the broader outlook declined, according to preliminary data from S&P Global.
The composite output index rose to 53.5 in March from 51.6 in February, reaching a three-month high and indicating modest overall growth.
The improvement was largely due to a sharp increase in services activity, with the flash services PMI climbing to 54.3 from 51.0.
In contrast, the manufacturing PMI fell into contraction territory, dropping to 49.8 from 52.7.
Despite the rebound in services, business sentiment weakened notably.
Expectations for the year ahead fell to their second-lowest level since October 2022, with S&P citing growing caution among companies about the economic environment.
Many respondents expressed concern over customer demand and the effects of policy changes under the new administration.
Confidence deteriorated sharply in the services sector, where worries centered on the potential impact of federal spending cuts, new tariffs, and broader policy shifts.
In manufacturing, sentiment held relatively firm, remaining close to three-year highs.
Job growth was described as subdued, while input cost inflation picked up significantly, especially in manufacturing.
Firms attributed rising costs partly to tariff-related pressures, though heightened competition helped limit the pass-through to selling prices.
Tesla rebounds, Lockheed Martin in the red
Tesla led gains on Wall Street, surging 11.93% as investors moved back into the stock following a sharp selloff.
Elsewhere, United Airlines climbed 7.15%, while Advanced Micro Devices saw strong gains of 6.96%.
On the downside, Lockheed Martin fell 1.07% after Bank of America downgraded the defense contractor from 'buy' to 'hold,' citing limited near-term upside.
Shares of whiskey distiller Brown-Forman Corporation declined 2.34%.
Reporting by Josh White for Sharecast.com.
Dow Jones - Risers
Home Depot Inc. (HD) $363.77 3.59%
American Express Co. (AXP) $277.86 2.72%
JP Morgan Chase & Co. (JPM) $248.06 2.66%
Goldman Sachs Group Inc. (GS) $580.10 2.65%
Visa Inc. (V) $343.87 2.45%
Salesforce.Com Inc. (CRM) $285.96 1.90%
International Business Machines Corporation (CDI) (IBM) $248.45 1.88%
3M Co. (MMM) $153.15 1.86%
Walmart Inc. (WMT) $87.49 1.76%
Caterpillar Inc. (CAT) $341.67 1.75%
Dow Jones - Fallers
Verizon Communications Inc. (VZ) $43.56 -0.98%
Merck & Co. Inc. (MRK) $92.31 -0.86%
Nike Inc. (NKE) $67.39 -0.81%
Procter & Gamble Co. (PG) $165.65 -0.62%
Amgen Inc. (AMGN) $314.38 -0.53%
Johnson & Johnson (JNJ) $163.29 -0.21%
Intel Corp. (INTC) $24.22 -0.16%
Unitedhealth Group Inc. (UNH) $516.50 -0.07%
Dowdupont Inc. (DWDP) $0.00 0.00%
McDonald's Corp. (MCD) $305.67 0.08%
S&P 500 - Risers
Kohls Corp. (KSS) $9.40 13.53%
Gap Inc. (GAP) $21.67 8.24%
United Airlines Holdings Inc (UAL) $80.22 7.15%
Bath & Body Works, Inc. (BBWI) $32.42 7.07%
Advanced Micro Devices Inc. (AMD) $113.85 6.96%
PVH Corp. (PVH) $69.30 6.37%
Ipg Photonics Corp. (IPGP) $67.62 5.56%
Ralph Lauren Corp (RL) $236.04 5.36%
Macy's Inc. (M) $13.94 5.29%
Arista Networks Inc. (ANET) $87.51 5.27%
S&P 500 - Fallers
Hormel Foods Corp. (HRL) $29.26 -2.40%
Brown Forman Corp. Class B (BF.B) $33.84 -2.34%
Interpublic Group of Companies Inc. (IPG) $25.93 -2.19%
Omnicom Group Inc. (OMC) $79.43 -2.11%
Crown Castle International (CCI) $104.31 -1.96%
American Tower Corp (Reit) (AMT) $212.80 -1.59%
FirstEnergy Corp. (FE) $39.00 -1.42%
Western Union Co. (WU) $10.49 -1.41%
Starbucks Corp. (SBUX) $95.72 -1.39%
Kraft Heinz Co. (KHC) $29.12 -1.36%
Nasdaq 100 - Risers
Tesla Inc (TSLA) $278.39 11.93%
Qvc Group Inc Series A (QVCGA) $0.21 6.98%
Ross Stores Inc. (ROST) $129.18 4.57%
Dollar Tree Inc (DLTR) $69.74 4.48%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $366.16 4.45%
Microchip Technology Inc. (MCHP) $53.89 4.20%
Analog Devices Inc. (ADI) $212.34 3.88%
American Airlines Group (AAL) $11.83 3.86%
Meta Platforms Inc. (META) $618.85 3.79%
Texas Instruments Inc (TXN) $185.51 3.64%
Nasdaq 100 - Fallers
Vodafone Group Plc ADS (VOD) $9.29 -4.52%
Starbucks Corp. (SBUX) $95.72 -1.39%
Kraft Heinz Co. (KHC) $29.12 -1.36%
Liberty Global plc Series C (LBTYK) $12.02 -1.07%
Liberty Global plc Series A (LBTYA) $11.55 -1.03%
Amgen Inc. (AMGN) $314.38 -0.53%
Trip.com Group Limited (TCOM) $63.91 -0.50%
Comcast Corp. (CMCSA) $36.60 -0.41%
Gilead Sciences Inc. (GILD) $106.74 -0.32%
Broadcom Inc. (AVGO) $191.25 -0.21%
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