On the U.S. economic calendar, the Conference Board is expected to report its consumer confidence index likely dropped to 94 in March from 98.3 in February. In a separate report, the Commerce Department is expected to show new home sales likely rose to 679,000 units in February from 657,000 units in January.
Federal Reserve Board Governor Adriana Kugler is expected to speak on "Economic Landscape and Entrepreneurship" before the U.S. Hispanic Chamber of Commerce 2025 Legislative Summit, in Washington. Separately, Federal Reserve Bank of New York President John Williams is set to give opening remarks before the 2025 New York Fed Regional and Community Banking Conference, in New York.
Hot sauce maker McCormick is expected to post a rise in first-quarter revenue, helped by improving demand for its spices and seasonings. Investors will look out for comments on demand, pricing actions, promotional activity and annual forecasts.
On the Latin American front, Mexico's January retail sales figures are scheduled for release.
Wall Street rose sharply, lifted by Nvidia and Tesla following signs that the Trump administration might take a more measured approach on tariffs against U.S. trading partners. "Investors are experiencing a slight sigh of relief, but at the same time they are cynical about how long this may last," said Sam Stovall, chief investment strategist at CFRA Research. "The causes of this manufactured correction have not evaporated. They are tariffs and what the impact of tariffs could be on economic growth, inflation and corporate profits." Nvidia rose 3.15% and Tesla jumped 11.93%.The S&P 500 added 1.76% to end at 5,767.57 points, while the Nasdaq Composite gained 2.27% to 18,188.59. The Dow Jones Industrial Average advanced 1.42% to 42,583.32.
Treasury yields started the week on the upswing as investors digested News Story that President Donald Trump could soften the hit from a tranche of tariffs expected next week, adding to gains seen on Friday. However investors are also still contending with fiscal and labor market uncertainty as Congress considers extending 2017's sweeping tax cuts, and the full effects on employment remain to be seen from Elon Musk's Department of Government Efficiency and its efforts to slash the federal workforce, according to Shipley. Meanwhile, continued uncertainty over the administration's trade policies will likely keep investors on edge. The benchmark Treasury notes fell 23/32 to yield 4.3385%. Two-year notes dropped 6/32, yielding 4.0409%. The 30-year bonds were down 1-4/32 with a yield of 4.6656%.
The dollar jumped against the euro and yen after data showed U.S. business activity picked up in March, after earlier rising against Japan's currency on reports that U.S. President Donald Trump will be flexible with upcoming tariffs. "Everyone was initially shocked by the scope and size of tariff talk, but lately markets are taking a more measured view," Adam Button, chief currency analyst at ForexLive in Toronto, said. "A wave of cautious optimism is washing across foreign exchange markets on hopes that next week’s U.S. tariff announcement will prove less extreme than had previously been feared," said Karl Schamotta, chief market strategist at Corpay in Toronto. The dollar index rose 0.20% to 104.29. The euro dropped 0.1% to $1.0803. Against the Japanese currency, the greenback rose 0.92% to 150.69 yen.
Oil prices gained more than 1% as U.S. President Donald Trump said he will impose a 25% tariff on countries that buy oil and gas from Venezuela. Price gains were capped, however, as the U.S. gave oil producer Chevron until May 27 to wind down its oil operations and exports from Venezuela. "We've got a little bit of a supply shock of Venezuela losing barrels to the world market. So that's definitely a bullish force," said Dennis Kissler, senior vice president of trading at BOK Financial, adding that investors were watching for tighter restrictions on Iran as well. Brent crude futures rose 1.33% to $73.12 a barrel. U.S. West Texas Intermediate crude was up 1.39% at $69.23 a barrel.
Gold prices dropped as the dollar touched an over two-week high, while investors took stock of U.S. President Donald Trump's more cautious stance on tariffs against trading partners. "We've hit a record after record and now the market is just consolidating these gains and this is enforced by somewhat higher U.S. dollar," said Bart Melek, head of commodity strategies at TD Securities. "We're looking at a level of about $3,150 plus, later in the year that gold will likely strive to as the Fed starts loosening monetary policy," Melek said. Spot gold fell 0.55% to $3,007.13 an ounce. U.S. gold futures were 0.24% lower at $3,014.10 per ounce.
