Stocks experienced another choppy session on Monday as a rally in tech names following a surprise U.S. tariff exemption from President Donald Trump faded. The Dow Jones Industrial Average added 421 points, or 1%. The Nasdaq Composite rose 1%, while the SP 500 added 1.1%. The three major indexes tr ade both above and below their flatlines over the course of the volatile day. The Dow rallied more than 500 points at session highs, while the Nasdaq at one point climbed 2.5%. Investors cheered Trump’s exemption of smartphones and computers, as well as other devices and components like semiconductors, from his new “reciprocal” tariffs, according to new U.S. Customs and Border Protection guidance issued late Friday. But Trump and Commerce Secretary Howard Lutnick then suggested Sunday that the exemptions aren’t permanent, stirring up more tariff uncertainty. Trump said in a Truth Social post that these products are still “subject to the existing 20% Fentanyl Tariffs, and they are just moving to a different Tariff ‘bucket.'” Still, Apple shares gained about 3.5% on the news, while Dell jumped more than 4%. Yet the Technology Select Sector SPDR Fund (XLK) traded less than 1% higher, weighed down by slides in Meta and Nvidia. “The market believes that the administration is probably in some sort of retreat from their most-extreme tariff proposal,” said Jed Ellerbroek, portfolio manager at Argent Capital Management. “That’s incremental good news.” The developments come as the “Magnificent Seven” and broader market have come under pressure in the wake of the president’s “liberation day” tariff announcement earlier this month. Last week marked one of the most volatile trading weeks on record for the Street. The CBOE Volatility Index spiked above 50 on Thursday, with stocks giving up some of their historic gains seen a day earlier. On Wednesday, the market soared after Trump announced a 90-day reprieve for a number of his new tariff rates, seeing its third-biggest one-day gain since World War II. Despite last week’s rally, all three major averages are still down sharply since the so-called reciprocal tariffs were announced. The SP 500 has dropped 3.8%, while the Nasdaq and Dow have fallen about 4.4% and 4.1%, respectively. “The question a lot of investors are asking, ‘Is this it – is the bottom in?'” said Dave Sekera, chief U.S. market strategist at Morningstar. “It’s certainly possible, but I don’t think so.” Fed’s Waller sees tariff inflation impact as ‘transitory’ Federal Reserve Governor Christopher Waller said Monday that inflation from President Donald Trump’s tariffs likely will be “transitory,” and indicated that interest rate reductions are still on the table. In a speech delivered in St. Louis, the central bank official broke down tariffs into two scenarios, one where they are higher and longer-lasting and the other whether they are negotiated lower. In either case, Waller said rate cuts are likely, with to boost growth under the higher-tariff scenario or as “good news” reductions under the reduced level. “I can hear the howls already that this must be a mistake given what happened in 2021 and 2022. But just because it didn’t work out once does not mean you should never think that way again,” Waller said of the “transitory” call. —Jeff Cox Magnificent 7 will recover post-earnings season, analyst says The Magnificent Seven will likely find more of a reprieve after earnings season wraps up, according to Canaccord Genuity. Despite the temporary pause in retaliatory tariffs for electronics, analyst Michael Graham expects the companies will still issue cautious commentary and guidance. “Some of these companies remain key targets of potential regulatory retaliation, and 3) the companies all reported Q4 before tariff rhetoric became very loud, so even though the trade picture is a lot better than it was a week ago, it is still a lot worse than it was at the time we last heard from these management teams about the business outlook,” Graham wrote in a note on Monday. “Given the dramatic underperformance of Mag7 so far this year, we are eyeing these stocks for a reversion, but suggest risk becomes much lower after Q1earnings reports,” Graham added. — Hakyung Kim Auto stocks rise after Trump says he may ‘help’ car companies on tariffs Auto stocks rose after Trump said he was considering some tariff policy changes to benefit car manufacturers. “I’m looking at something to help some of the car companies. … They need a little bit of time because they’re going to make [parts] here, but they need a little bit of time,” Trump said. Shares of Ford and General Motors each rose more than 3%, while Stellantis gained about 2.8%. — Jesse Pound Chinese internet ETF rises more than 4% The KraneShares CSI China Internet ETF (KWEB) climbed 4.2% Monday, on pace for third positive day in four. The gains were led by East Buy Holding, Qifu Technology, PDD, Full Truck Alliance, Alibaba and NetEase Cloud Music, which were all up about 6% or greater so far. — Yun Li, Gina Francolla Apple, Alibaba, Palantir among the names making moves midday Check out the stocks making moves in midday trading: Apple — The stock added more than 2% as sentiment on tech shares broadly rose Monday. President Trump announced on Friday that several electronic devices and components will be exempt from U.S. tariffs. The policy benefits Apple given that the majority of the iPhone maker’s products are manufactured in China. Several Wall Street analysts were relieved following the exemption, but said Apple still faces growth concerns amid a weaker macroeconomic environment.China tech stocks — U.S. shares of Chinese tech firms gained on the heels of the Trump administration’s move to exempt smartphones, computers and semiconductors from “reciprocal” tariffs. Shares of e-commerce giants Alibaba and PDD each advanced more than 5%, while others such as JD.com and Baidu rose more than 4% and 3%, respectively.Palantir Technologies — The software stock climbed 4% after NATO announced it had finalized its acquisition of Palantir’s Maven Smart System, an artificial intelligence-enabled warfighting system. NATO expects to use the system within its Allied Command Operations within the next 30 days. Read the full list here. — Sean Conlon Apple market cap rises back above $3 trillion Deb Cohn-Orbach | UCG | Universal Images Group | Getty ImagesThe glass building on Broadway in New York City is the Apple Store where customers can interact and purchase Apple products, speak with experts, receive technical support at the Genius Bar and participate in workshops and events. Apple‘s recent rally put the stock’s market cap back above $3 trillion. The tech stock last recorded a market cap above $3.1 trillion. Apple was the first U.S. company to reach that level in 2022. Shares last rose nearly 2% in Monday trading, building on Friday’s gain of around 4%. — Alex Harring Argentina ETF surges, building on Friday rally The Global X MSCI Argentina ETF (ARGT) rose sharply in midday trading and was on track for its second straight session with an advance of more than 6%. The rally is likely being spurred in part by the International Monetary Fund’s announcement on Friday of a $20 billion funding program for the country. Argentina’s economy minister also said the country will lift most foreign exchange controls, according to Bloomberg. The Argentine peso fell sharply against the U.S. dollar on Monday. Even with the two-day jump, the ARGT is still trading below where it closed on March 27. — Jesse Pound, Adrian van Hauwermeiren Rumor Hassett: Trump aide teases ‘amazing’ tariff deal offers, predicts no 2025 recession National Economic Council Director Kevin Hassett said “more than 10” countries have put forward “amazing” trade deal offers as they seek to avoid Trump’s steep tariffs. Hassett also asserted in a Fox Business interview that there will “100% not” be a recession in the U.S. in 2025. He denied Democrats’ growing questions about possible insider trading at the White House before Trump announced a monthslong pause in so-called reciprocal tariffs. — Kevin Breuninger Employment outlook hits the worst since Covid-19 pandemic, Fed survey shows Allison Joyce | Bloomberg | Getty ImagesA “Now Hiring” sign at a job and resource fair hosted by the Asheville Area Chamber of Commerce in partnership with NCWorks in Fletcher, North Carolina, on April 9, 2025. Expectations for the labor market declined to their lowest point since the early days of the Covid-19 pandemic, according to a New York Federal Reserve consumer survey released Monday. Respondents see a 44% mean probability that the unemployment rate will be up a year from now, the worst outlook since April 2020, the survey showed. That came amid heightened expectations for near-term inflation and the worst outlook for the stock market since June 2022. — Jeff Cox Weekend tariff developments were ‘unequivocally positive for stocks,’ Tom Lee says The lower tariffs on electronic goods from China, at least temporarily, are a positive for the stock market even with the confusion over the weekend, according to Fundstrat co-founder Tom Lee. “Everything that happened over the weekend, including the Sunday further explanations, all of this is still unequivocally positive for stocks,” Lee said Monday on CNBC’s “Squawk Box.” Watch Lee’s full interview on CNBC Pro. — Jesse Pound Crypto funds, led by bitcoin ETFs, log third week in a row of outflows Dado Ruvic | ReutersRepresentations of cryptocurrency Bitcoin are seen in this illustration taken Nov. 25, 2024. Crypto investment funds saw their third week in a row of outflows as the tariff tumult continued to weigh on sentiment in crypto. Outflows for last week totaled $795 million, nearly wiping out year-to-date inflows, which now stand at $165 million, according to CoinShares. CoinShares’ James Butterfill noted that the late-week price rebound helped lift total assets under management from their lowest point on April 8 — also their lowest since November — to $130 billion. That marks an 8% increase from Trump’s “temporary reversal of the economically calamitous tariffs,” he said. Bitcoin funds, led by BlackRock’s IBIT and Grayscale’s GBTC, accounted for most of the outflows at $751 million for the week, followed by $38 million in outflows of ether funds. However, as some pointed out in highlighting bitcoin’s resilience through the tariff-driven market chaos, year-to-date inflows for bitcoin exchange-traded funds remain positive at $545 million. — Tanaya Macheel If you can’t build it, buy it: Traders betting Pfizer will acquire GLP-1 drugmaker Pfizer‘s decision to scrap development of its weight loss pill danuglipron is stoking speculation that the pharmaceutical giant will now look to acquisitions as a way to enter the lucrative GLP-1 market. “The question now is: if PFE is still committed to obesity, what will it go out and acquire to stay in the game?” Citi’s health-care trading desk said in a note to clients. Ahead of the market’s open, Pfizer shares are essentially flat, while stock in Viking Therapeutics is soaring more than 20%. Citi sees Viking as a likely candidate, but would not be surprised if other companies in the space trade higher as well. Viking has both oral and subcutaneous GLP-1 drug candidates that have advanced beyond early-stage clinical trials. Clinical stage biopharma company Structure Therapeutics was up nearly 15%, while Terns Pharmaceuticals and Altimmune both rose about 7%. — Christina Cheddar Berk Stocks open higher Stocks kicked off Monday’s session in the green. The Dow jumped 480 points, or 1.2%, shortly after 9:30 a.m. ET. The SP 500 and Nasdaq Composite climbed 1.8% and 2.3%, respectively. — Alex Harring Yellen says recession risks ‘have gone way up’ due to tariffs Former Treasury Secretary Janet Yellen said Monday that President Trump’s tariffs have escalated the risks of a recession. “Recession probabilities have gone way up,” Yellen told CNBC during a “Squawk Box” interview. “I wouldn’t want to go so far as to forecast a recession, but look, estimates suggest that the impact … if they stay where they are on consumers, could be in the region of $4,000, and that is a big hit to household income that can lead to less consumer spending on a wide range of goods.” In addition, she said businesses will be reluctant to spend amid the uncertainty over the levies, risking a “significant recession.” Nevertheless, Yellen said she thinks the Federal Reserve, where she served as chair prior to her stint at the Treasury, will be “reluctant” to cut interest rates given inflation risks from the tariffs. — Jeff Cox Stocks making the biggest moves premarket Monday Check out the companies making headlines before the bell: Goldman Sachs — The investment bank gained nearly 2% after reporting a top- and bottom-line beat in the first quarter. Goldman Sachs posted earnings of $14.12 per share while analysts had called for $12.35, according to LSEG. Revenue of $15.06 billion also beat consensus expectations for $14.81 billion. Pfizer — Shares were down slightly in the premarket after the company said it would halt development of its daily weight loss pill. This comes after a patient experienced a liver injury possibly caused by the drug during a trial.Apple — The iPhone maker popped more than 5% Monday morning after Trump announced smartphones, among other electronics, would be exempt from reciprocal tariffs, at least temporarily. The full list can be found here. — Hakyung Kim Goldman Sachs rises after earnings beat Goldman Sachs shares popped nearly 3% in Monday’s premarket after first-quarter earnings topped expectations. The bank earned $14.12 per share on $15.06 billion in revenue. Analysts polled by LSEG forecast $12.35 in earnings per share and $14.81 billion in revenue. Goldman shares have tumbled more than 13% in 2025. — Alex Harring, Hugh Son Pfizer falls after ending development of daily weight loss pill Andrew Kelly | ReutersThe Pfizer logo is seen at the company’s world headquarters in New York on April 28, 2014. Pfizer shares were down more than 1% in the premarket after the company said it would halt development of its daily weight loss pill. This comes after a patient experienced a liver injury possibly caused by the drug during a trial. “While we are disappointed to discontinue the development of danuglipron, we remain committed to evaluating and advancing promising programs in an effort to bring innovative new medicines to patients,” Dr. Chris Boshoff, Pfizer’s chief scientific officer, said in the release. — Fred Imbert, Annika Kim Constantino Hong Kong shares rise over 2% to lead gains in Asia after Trump pauses tariffs on consumer electronics Asia-Pacific markets climbed Monday as U.S. President Trump paused tariffs on some consumer electronics, boosting risk sentiment. Hong Kong stocks led gains in the region, with the Hang Seng Index ending the day 2.4% higher at 21,417.40 and Hang Seng Tech Index moving up 2.34% to 5,015.12. Mainland China’s CSI 300 rose 0.23% to close at 3,759.14. Japan’s benchmark Nikkei 225 ended the day 1.18% higher at 33,982.36, while the broader Topix index rose 0.88% to 2,488.51. In South Korea, the Kospi index added 0.95% to close at 2,455.89, while the small-cap Kosdaq advanced 1.92% to 708.98. Meanwhile, Australia’s SP/ASX 200 increased 1.34% to close at 7,748.60. Indian markets were closed for a public holiday. — Amala Balakrishner There’s still ‘mass uncertainty’ despite Trump tariff exemption being ‘right move,’ according to Dan Ives While the Trump administration’s move to exempt smartphones, computers and semiconductors, among other electronic devices and components, from “reciprocal” tariffs may have been a win for Big Tech, the market could still be facing “mass uncertainty” around President Donald Trump’s tariff policy, says Wedbush analyst Dan Ives. “The White House made the right move in our view as tech leaders and the overall tech industry knew that if these tariffs went into effect it would essentially be a shut off valve for getting products to the US consumers,” Ives wrote in a note dated Sunday. “[B]ut still there is mass uncertainty, chaos, and confusion about the next steps ahead with all focus on China tariff negotiations being front and center and any progress on this game of high stakes poker between Beijing and DC being crucial to the markets and the economy this week,” he continued. — Sean Conlon Trump tariff exemptions are ‘dream scenario for tech investors,’ Ives says Scott Mlyn | CNBCDaniel Ives, Wedbush Securities Dan Ives, global head of technology research at Wedbush Securities, called the tariff exemptions “the dream scenario for tech investors.” “Smartphones, chips being excluded is a game changer scenario when it comes to China tariffs,” Ives told CNBC on Saturday. He said that “no sector was going to be more hurt than Big Tech” from Trump’s reciprocal tariffs. “I think ultimately Big Tech CEOs spoke loudly, and the White House had to understand and listen to the situation that this would have been Armageddon for big tech if were implemented,” Ives said. — Erin Doherty, Hakyung Kim Stocks saw gains last week Stocks are coming off a positive week despite their wild ride amid the Trump administration’s tariff developments. The SP 500 gained 5.70%, its best weekly performance since Nov. 3, 2023, when it gained 5.85%, and first positive week in three.The Dow Jones Industrial Average jumped 4.95%, its best weekly performance since Nov. 3, 2023, when it gained 5.07%.The Nasdaq Composite rose 7.29%, its best weekly performance since Nov. 11, 2022, when it gained 8.10%, and first positive week in three.The Russell 2000 advanced 1.82%, its best weekly performance since Jan. 17, 2025, when it gained 3.96%, and first positive week in three. — Sean Conlon, Christopher Hayes Stock futures open higher after volatile week Stock futures opened in the green Sunday evening. Shortly after 6 p.m. ET, SP 500 futures traded up 0.9%, and Nasdaq-100 futures advanced more than 1%. Futures tied to the Dow Jones Industrial Average gained 251 points, or 0.6%. — Sean Conlon ...read more read less