The US stock market closed higher on Monday, April 14, with Apple being the biggest driver for the S&P 500 index, following the White House's exemption of new tariffs on smartphones and computers. However, the market remained constrained by uncertainty over future tariffs, and the three major indexes pulled back from their intraday highs at closing. Investors continue to worry about the global trade situation, particularly the impact of tariff changes on corporate supply chain management.
Last Friday, the US government announced some tariff exemptions, but President Trump announced on Sunday he would announce new tariff rates on semiconductor imports this week. Following this news, global tech stocks generally rose, with iPhone maker Apple's shares increasing by 2.2%. Additionally, Dell and HP rose by 4% and 2.5%, respectively. Meanwhile, the semiconductor index only increased by 0.3%, and Nvidia's shares fell by 0.2%.
Since Trump's announcement of comprehensive tariffs on April 2, market volatility has intensified, and investor concerns over a global trade war have escalated, fearing it could lead to an economic recession. The frequent changes in Trump's tariff policy have led to the largest market swings in years. Investors find it difficult to predict future trends, lacking sufficient reasons for making long-term investment or spending decisions.
Looking at Monday's stock market performance, the Dow Jones Industrial Average rose 0.78% to finish at 40,524.79 points; the S&P 500 index increased by 0.79% to close at 5,405.97 points; and the NASDAQ Composite Index climbed by 0.64% to end at 16,831.48 points. At the same time, Wall Street's "fear index"—the CBOE Volatility Index—fell to 30.89, the lowest closing level since April 3.
Despite the slowdown in market volatility, technical analysts pointed out that the S&P 500 index currently forms a "death cross" pattern, which usually indicates that a short-term correction might turn into a long-term downward trend. This signal appears when the 50-day moving average crosses below the 200-day moving average. Historical evidence suggests that while this signal is concerning, it does not necessarily mean a significant market downturn.
So far this year, the S&P 500 index has fallen by about 8%. Although the stock market will be closed this week for the Good Friday holiday, some major US companies will still release quarterly earnings.
Currently, US companies have started reporting their first quarter earnings for 2025. However, due to unresolved tariff issues, many company executives might choose to remain cautious and refrain from making too many performance forecasts.
Notably, Goldman Sachs shares rose by 1.9% as the bank reported profit growth for the first quarter. Meanwhile, companies like Netflix and UnitedHealth Group are also set to release earnings this week. Additionally, some pharmaceutical stocks rose, particularly Pfizer, which announced the termination of its experimental weight loss drug's development, resulting in a 1% rise in its share price.
