Stock Surge: Markets Respond Favorably to Trump's Trade Approach

Wall Street saw significant gains as the S&P 500 and Dow hit monthly highs. Investors were relieved Trump didn't announce universal tariffs in his second term's early actions. Goldman Sachs reduced the chance of such tariffs, while market experts predict a more measured approach to trade negotiations.

Wall Street's major indexes closed higher on Tuesday, with significant performances from the S&P 500 and Dow, marking their highest levels in over a month. Investors expressed relief as President Donald Trump refrained from immediate universal tariffs at the start of his second term.

Goldman Sachs adjusted its forecast, lowering the probability of universal tariffs this year to 25%, down from 40% in December. Brokerage experts, like Carol Schleif of BMO Private Wealth, anticipate a nuanced strategy in Trump's trade policy.

The market saw broad rally support with the Russell 2000 outperforming, spurred by industrial gains and a boost from nuclear power stocks. Simultaneously, heavyweight Apple faced setbacks due to a downgraded rating, while automakers benefited from Trump's trade policy considerations.

(With inputs from agencies.)