Getty Images; Jenny Chang-Rodriguez/BI
US stocks surged on Monday and the dollar dropped after a report said President-elect Donald Trump's tariff plans would be more targeted than initially thought.
The US dollar index dropped about 1% in its biggest one-day decline since August, while the S&P 500 and Nasdaq 100 surged about 1%.
The Washington Post reported that Trump's aides were reviewing plans to impose tariffs on every country but only on imports that are seen as critical to national or economic security.
The report comes just a few weeks after Trump threatened broad tariffs against Canada and Mexico in a post to his Truth Social account.
"It looks as if officials are already preparing to water down the worst of Trump's campaign promises by narrowing the scope of the tariffs," Kyle Chapman, analyst a Ballinger Group, said.
The threat of broad-based tariffs had stoked fears of a rebound in inflation, which would limit the Federal Reserve's ability to lower interest rates.
But Trump himself pushed back on The Washington Post report.
"The story in the Washington Post, quoting so-called anonymous sources, which don't exist, incorrectly states that my tariff policy will be pared back. That is wrong," Trump said in a post to Truth Social.
The 10-year US Treasury yield declined by about three basis points to 4.58% immediately following The Washington Post report, but has since rebounded to 4.63%. Meanwhile, the dollar pared its losses to about 0.5%.
Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Monday:
Tech stocks moved higher on Monday, led by shares of Nvidia, which surged about 3%.
It's a big week for AI with the Consumer Electronics Show set to kick off on Monday. Nvidia CEO Jensen Huang will give the keynote speech Monday evening.
It's a shortened trading week, with the stock market closed on Thursday, January 9, in remembrance of the late former president, Jimmy Carter.
Here's what else is going on:
In commodities, bonds, and crypto:
