S&P 500 Rallies On Best Day In 2 Months As Recession Fears Ease, Tesla Rockets, Bitcoin Hits $88,000: What's Driving Markets Monday?

Wall Street soared Monday, kicking off the week in full risk-on mode as investors welcomed signs of easing trade tensions and stronger-than-expected economic data.

President Donald Trump‘s softer tone on potential tariffs ahead of the looming April 2, 2025 deadline helped calm nerves. Adding to the optimism, fresh business surveys showed a strong rebound in services activity in March, easing recession worries.

U.S. economic activity accelerated in March, with the Composite Purchasing Managers' Index (PMI) rising rom 51.6 in February to to 53.5. Services PMI jumped to 54.3, well above consensus forecasts of 50.8 and sharply higher than the prior month's 51.0 reading. Yet, the report also flagged a notable uptick in cost pressures, as businesses reported growing concerns over input prices, likely linked to heightened speculation around potential tariff measures.

The S&P 500 jumped 1.75% by midday in New York, on track for its best one-day performance since mid-January. The Nasdaq 100 rallied 2%, mirroring gains from March 14, the index's strongest day since early November 2024.

Small caps outperformed their large-cap peers, underscoring the market's improving risk appetite. The ...