U.S. stocks rise on tariff reprieve; investors react to mixed economic data and falling oil prices.
In Short
U.S. stocks rose following a one-month tariff reprieve on auto imports from Mexico and Canada, with President Trump hinting at potential additional exemptions. While Treasury yields slightly increased, oil prices fell, leading to a drop in energy stocks.
U.S. stocks rose after a one-month tariff reprieve for auto imports from Mexico and Canada was announced by the White House.
This suggests President Trump may consider additional exemptions.
Commerce Secretary Howard Lutnick indicated that a compromise is likely, with President Trump aiming to “work something out” with the involved countries.
Weak labour market
Investors are currently assessing a weak labour-market report from ADP alongside better-than-expected U.S. service-sector activity data.
As a result, stock indexes improved, led by the Nasdaq Composite, which gained over 1%.
In the bond market, benchmark Treasury yields increased slightly following their second-lowest settling of the year at 4.209%.
Meanwhile, oil prices decreased, with benchmark U.S. crude futures reaching their lowest levels of the year, prompting a sell-off in energy stocks.
