The S&P 500 closed sharply higher Monday, led by tech as sentiment was boosted by reports indicating that upcoming U.S. trade tariffs will be narrower and less strict than initially feared.

At 4:00 p.m. ET (20:00 GMT), the Dow Jones Industrial Average climbed 597 points, or 1.4%, the S&P 500 index rose 1.7%, and the NASDAQ Composite gained 2.3%. 

Worries over the Trump administration’s tariffs have battered Wall Street in recent weeks, with the major indices slumping to six-month lows earlier this month as markets feared that the tariffs will increase inflation, disrupt global trade and dent economic growth. 

U.S. reciprocal duties to be limited 

However, reports from Bloomberg and the Wall Street Journal emerged over the weekend indicating that U.S. President Donald Trump will likely not impose sectoral tariffs next week, and that his plans for reciprocal tariffs will be limited to about 15 countries. 

Trump has repeatedly touted April 2 as “liberation day” for the U.S., and while tariffs against major U.S. trading partners are still expected to weigh on the economy, their lessened scope offered investors some hope that the impact will be minimal.

"Targeted is obviously better than the alternative, but the trade changes being envisioned are still substantial, and it’s likely they will have negative effects on the economy and corporate profits, at least in the near and medium term," analysts at Vital Knowledge said in a note to clients.

Fedspeak, economic data on tap 

Focus this week is on a slew of addresses by Federal Reserve officials for more cues on the U.S. economy, especially after the central bank last week signaled heightened uncertainty over Trump’s policies. 

The Fed is widely expected to keep interest rates unchanged in the near-term, with sticky inflation also limiting the scope for rate cuts. 

Beyond the Fed, purchasing managers index data for March is set to offer more cues on U.S. business activity. A revised reading on fourth-quarter gross domestic product data is also due this week, as is the personal consumption expenditures price index, an inflation metric closely followed by Federal Reserve policymakers.

In the corporate sector, earnings from discount retailer Dollar Tree (NASDAQ:DLTR) and up-market athletic clothier Lululemon (NASDAQ:LULU) are on the calendar.

Elsewhere, James Hardie Industries (NYSE:JHX) ADRs slumped 17% after the fiber-cement maker said it will acquire outdoor products manufacturer AZEK in a cash and stock deal valued at nearly $9 billion.

Gold Fields (NYSE:GFI) ADRs fell 5% after Australia’s Gold Road Resources rejected the $2.1 billion buyout bid from the gold miner because it believed the offer materially undervalued the company and was "highly opportunistic".

Tesla rallies; 23andMe bankruptcy filings; Nvidia

Tesla Inc (NASDAQ:TSLA) jumped 12% as investors bought the recent dip in the EV maker that has seen its shares decline for straight weeks. There were also reports that the EV’s maker’s showroom in Texas had been targeted with incendiary devices.

23Andme Holding Co (NASDAQ:ME) slumped 59% after the company filed for Chapter 11 bankruptcy protection.

NVIDIA Corporation (NASDAQ:NVDA), meanwhile, climbed 3% as the prospect of less harsher tariffs imposed by the Trump administration eased concerns about tariff-induced headwinds for the chipmaker.

(Peter Nurse, Ambar Warrick contribute to this article.)