Wall Street Pulls Back After Early Gains As Tariff Uncertainties Persist: What's Driving Markets Monday?

Wall Street pared early morning gains by midday Monday, as investor caution returned despite a temporary easing in U.S.-China trade tensions. While the initial market reaction was positive, especially in tech, enthusiasm faded as the trading session progressed.

Over the weekend, the White House announced a provisional exemption for smartphones and semiconductors from China’s proposed 145% trade tariff. These items will instead face a 20% levy—linked to fentanyl-related enforcement—until sector-specific duties are finalized.

The development triggered a strong premarket rally in technology stocks. Yet, those gains were sharply trimmed by midday amid broader geopolitical and policy concerns.

During a White House meeting with El Salvador President Nayib Bukele, President Donald Trump said he plans to impose tariffs on pharmaceutical imports to boost domestic manufacturing.

He reiterated a hardline stance on Iran, warning of severe consequences if Tehran develops nuclear weapons, but also suggested “flexibility” in tariff ...