Tech Stocks Propel S&P 500 Amid Tariff Speculation and Market Volatility

The S&P 500 surged to a two-week high led by Nvidia and Tesla as hopes rose for a tempered U.S. tariff strategy. Investors remain cautious amid economic slowdown fears due to tariffs, despite gains in major indices. The market rebound is facilitated by a shift in investment towards key technology stocks.

The S&P 500 soared to its highest level in two weeks, bolstered by significant rallies in tech giants Nvidia and Tesla. This upward movement came in the wake of media reports suggesting a more cautious approach by the Trump administration on tariffs against U.S. trading partners.

Uncertainty continues as Trump administration sources caution that no final tariff decisions have been made. Nevertheless, Nvidia's shares climbed 3.3%, while Advanced Micro Devices also saw a notable increase of 6.6%, pushing the PHLX chip index up by 3.1%. Tesla recovered lost ground with a 10% surge.

The market remains on edge amidst fear of economic downturns sparked by previous tariff announcements involving China, Mexico, and Canada. While the S&P 500 shows a 4% recovery from recent lows, it still lags 6% below its February 19 record high. Investors express wary optimism, eyeing potential economic effects of tariff policies.

(With inputs from agencies.)