U.S. Stocks Surge and Bitcoin Holds onto Gains as Trump Softens Stance on Tariffs

The major U.S. stock indices closed Monday on a positive note, while Bitcoin surged back to the $85,000 mark, reflecting a 7% increase over the past week.

Investor confidence increased following President Donald Trump’s announcement regarding exemptions for smartphones, computers, and various components from his “reciprocal” tariffs.

Shares of Apple (AAPL) experienced a rise after analysts at KeyBanc Capital Markets upgraded the stock from Underweight to Sector Weight, citing positive sentiment related to the tariff exemption. The research firm indicated that the worst-case tariff scenario has been lifted—for the time being, at least.

“We’ve taken some dry powder and put it to work last week,” stated Stephanie Guild from Robinhood on CNBC. “However, we haven’t completely removed it because we believe diversification is crucial—not just away from the dollar, but also by being cautious and balancing between low-volatility stocks and growth stocks. There’s a put now—I think that’s been confirmed—and that’s actually very helpful.”

Meanwhile, the CBOE Volatility Index (VIX) dropped by more than six points on Monday, while U.S. Treasuries saw a decline, both of which are typically favorable signs for equities.

Bitcoin (BTC) managed to trade above $85,000 multiple times during the day but couldn’t break through any higher. Nevertheless, the $84,000 level demonstrated robust support. Interestingly, the overall crypto market remained resilient, with investors largely unaffected by Mantra (OM) plummeting 90% as its CEO attributed the collapse to enforced exchange liquidations, although some investors suspect insider trading and fraud are the real issues.