Stocks rose in a choppy session on Monday, helped by a rally in tech names following a surprise U.S. tariff exemption from President Donald Trump.

The Dow Jones Industrial Average added 312.08 points, or 0.78%, to close at 40,524.79. The Nasdaq Composite rose 0.64% to end at 16,831.48, while the S&P 500 added 0.79% and settled at 5,405.97. All three indexes at times traded in negative territory during the turbulent session.

Investors cheered Trump's exemption of smartphones and computers, as well as other devices and components such as semiconductors, from his new "reciprocal" tariffs, according to new U.S. Customs and Border Protection guidance issued late Friday.

But Trump and Commerce Secretary Howard Lutnick then suggested Sunday that the exemptions are not permanent, stirring up more tariff uncertainty. Trump said in a Truth Social post that these products are still "subject to the existing 20% Fentanyl Tariffs, and they are just moving to a different Tariff ‘bucket.'"

Still, Apple shares gained 2.2% on the news, while Dell
jumped nearly 4%. The Technology Select Sector SPDR Fund (XLK)
added nearly 1%.

"The market believes that the administration is probably in some sort of retreat from their most-extreme tariff proposal," said Jed Ellerbroek, portfolio manager at Argent Capital Management. "That's incremental good news."

The CBOE Volatility Index, or VIX, known as Wall Street's fear gauge, tumbled more than 6 points in Monday's session. U.S. Treasury yields also retreated, providing upward momentum for stocks.

These developments come as the "Magnificent Seven" and broader market have come under pressure in the wake of the president's tariff announcement earlier this month.

Last week marked one of the most tumultuous trading weeks on record for the Street, with the CBOE Volatility Index spiking above 50. Stocks soared on Wednesday after Trump announced a 90-day reprieve for several of his new tariff rates, resulting in the S&P 500′s third-biggest one-day gain since World War II.

While stocks advanced last week, all three major averages are still down sharply since the so-called reciprocal tariffs were first announced on April 2. The S&P 500 has dropped 4.7%, while the Nasdaq and Dow have fallen about 4.4% and 4%, respectively.

"The question a lot of investors are asking is, ‘Is this it – is the bottom in?'" said Dave Sekera, chief U.S. market strategist at Morningstar. "It's certainly possible, but I don't think so."

Source: CNBC