Markets by

VIDYA RAMAKRISHNAN
05:50 PM ET 03/24/2025

Indexes got off to a strong start and rallied to the finish on Monday. News that President Donald Trump’s tariffs may not land on targeted sectors such as automobiles, pharmaceuticals and semiconductors led to a jubilant mood. But does that mean the stock market is on the road to recovery?

The Dow Jones Industrial Average jumped 500 points shortly after the opening bell and added to those hefty gains in afternoon action and kept bulking up throughout the day. Both the Dow and benchmark S&P 500 index reclaimed their 200-day moving averages.

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Meanwhile, the tech-heavy Nasdaq index retook its 21-day moving average and nearly finished the day in higher volume. Had it ended trading with higher volume than Friday’s triple-witching session, that would have been a remarkable achievement. You could say Monday’s strong rally resulted in a follow-through day in spirit.

Here are the numbers: Dow stocks gained 1.4% while the S&P 500 rose 1.8%. The Nasdaq rallied 2.3%. Volume ran lighter on the New York Stock Exchange compared with the same time on Friday but was higher on the Nasdaq for much of the trading day. The Nasdaq’s volume failed to match Friday’s last-minute surge, however.

Small caps and growth stocks had a field day. The small cap Russell 2000 soared 2.6% while the Innovator IBD 50 (FFTY) exchange traded fund scored a 1.9% gain. The yield on the benchmark 10-year Treasury note rose eight basis points to 4.33%

Advancers held a solid lead vs. decliners on both exchanges throughout the day. At the close, the ratio was nearly 3-to-1 on the NYSE and 2-to-1 on the Nasdaq.

As a result, Investor’s Business Daily increased its recommended exposure level for investors to a range of 20% to 40%.

A Need For Stock Market Caution

However, with the Nasdaq still trading below its 200-day moving average, some cause for caution remains. Conflicting signals came from S&P Global’s Purchasing Managers Composite Index, which rose to 53.5 in March after February’s 51.6 reading. But manufacturing declined to 49.8 from 52.7 in February, and then services increased to 54.3 from 51.

Reciprocal tariffs are set to land on April 2 and will follow a week filled with economic reports, including the Fed’s preferred inflation gauge.

Consumer confidence data on Tuesday and fourth quarter GDP on Thursday will likely move stocks as will the Bureau of Economic Analysis’ Personal Consumption and Expenditures report — the Fed’s preferred gauge of inflation — which is due Friday.

The PCE Price Index is expected to rise 0.3% month on month for February and at 2.5% on an annual basis. Core PCE is also expected to rise 0.3% month on month and 2.7% annually.

Further, The Conference Board’s consumer confidence index for March is seen falling to 94.2 after February’s 98.3.

Meanwhile, economists are estimating a 2.4% increase in fourth quarter GDP.

Final estimates from the University of Michigan’s consumer sentiment for March also arrive on Friday. The index is seen staying unchanged at 57.9.

Dow Jones Stocks

One encouraging sign is that key growth stocks and industries made significant moves Monday. Nvidia (NVDA) and Amazon (AMZN) helped push the Dow higher on Monday. Nvidia cleared the 21-day moving average and Amazon made notable progress as well, retaking its 200-day moving average.

Other Dow leaders also made a strong showing. Home Depot (HD), Goldman Sachs (GS), Sherwin-Williams (SHW), JPMorgan Chase (JPM) and American Express (AXP) were among stocks that gained 2.5% or more. Health care firms lagged.

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Magnificent Seven stocks also fared well. Tesla (TSLA) was the biggest gainer on the S&P 500 as well as the Nasdaq. Alphabet (GOOGL) approached the 21-day line while Dow component Apple (AAPL) gained.

Further, two stocks in the biotech group cleared buy points. Catalyst Pharmaceuticals (CPRX) and Halozyme Therapeutics (HALO) broke out of long consolidations. Gains were more significant for Catalyst Pharma, which soared into a buy zone from an entry at 24.64 while Halozyme Therapeutics tested a buy point of 65.53.

Industry groups that gained the most on Monday included oil-and-gas royalty stocks and internet content players. Energy explorer Antero Resources (AR) attempted to clear a buy point of 41.53 in lighter volume. Shares finished just below a buy point on Monday.

View General Market Indicators chart page here.

Please follow VRamakrishnan on X/Twitter for more news on the stock market today.

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