US stocks closed near session highs on Monday as investors welcomed reports that the next wave of President Trump's tariffs will be narrower than expected.

The S&P 500 ( ^GSPC ) rose almost 1.8% on the heels of the broad benchmark snapping a four-week losing streak . The Dow Jones Industrial Average ( ^DJI ) advanced 1.4%, while contracts on the tech-heavy Nasdaq Composite ( ^IXIC ) led the gains, up 2.3%.

On Monday afternoon, President Trump said he may give "a lot of countries breaks" when it comes to reciprocal tariffs expected April 2. "We may take less than what they're charging because they've charged us so much, I don't think they could take it," Trump said.

This followed news reports from Bloomberg and The Wall Street Journal that the US reciprocal tariffs plan may be narrower than previously anticipated. That's providing some relief from fears that an escalating trade war will drive up inflation and further slow the economy.

The yield on the 10-year Treasury ( ^TNX ) rose about seven basis points to 4.33% as worries about a tariff hit to growth and global trade eased and appetite for risk sharpened.

Tesla's ( TSLA ) stock rallied nearly 12% as markets assessed signs Trump won't unveil tariffs on the auto sector on April 2, as anticipated. Tech stocks more broadly got a bid after Jack Ma's Ant said it expects a hefty cut to AI costs using alternative chips to Nvidia's ( NVDA ).

US economic output moved higher in March but still reflected an overall growth trajectory for the US economy that was slower than initially hoped in the first quarter, according to S&P Global's flash US composite PMI .

The highlight of the week's economic data is the release of February's Personal Consumption Expenditures Index, the Federal Reserve's preferred inflation gauge, on Friday.

On the earnings front, quarterly results from Lululemon ( LULU ), GameStop ( GME ), and Dollar Tree ( DLTR ) are due this week.

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