US stocks gave back early gains on Monday afternoon as markets remained on edge over Donald Trump’s trade policies despite new lenience over the weekend on electronics tariffs.
The S&P 500 and Nasdaq Composite were up only slightly, after climbing 1.7 per cent and 2.3 per cent higher in morning trading, respectively.
Equities ceded earlier gains as Trump spoke about US border policies and aid to Ukraine in its war with Russia while fielding questions in the Oval Office.
Monday’s early gains came after the White House late on Friday excluded smartphones and other consumer electronics from steep tariffs introduced this month. On Sunday, however, administration officials warned that the reprieve would be temporary.
Donald Trump’s erratic tariff swerves have driven huge volatility in markets in recent weeks, with his decision last Wednesday to pause “reciprocal” levies on most countries other than China sparking a huge rally in US equities.
“While uncertainty over Trump’s tariffs is far from over, we think the pause [on key tech products] indicates a sensitivity to market stress from the administration,” said Ulrike Hoffmann-Burchardi, chief investment officer for global equities at UBS Global Wealth Management.
