US equity indexes regained lost ground to finish mostly higher on Monday, ahead of more tariffs that will likely be announced by the Trump administration this week.

The Dow Jones Industrial Average rose 1% to 42,001.8, while the S&P 500 added 0.6% to 5,611.9. The latter fell as much as 1.65% earlier in the day. The Nasdaq Composite was down 0.1% to 17,299.3 at market close. Barring consumer discretionary, all sectors logged gains, led by consumer staples.

President Donald Trump is expected to announce reciprocal tariffs this week. Trump told reporters on Sunday that the expected tariffs will target "all countries," CNBC reported. "While the announcement can reduce tariff-related uncertainty from the US, we anticipate retaliation from affected trade partners, and a possible trade war," DA Davidson said in a note.

Last week, Trump announced a 25% duty on all imported cars and light trucks.

Goldman Sachs raised its 12-month probability of a US recession to 35% from 20% due to factors including slower economic growth and declining consumer confidence.

US Treasury yields traded lower, with the 10-year rate down 4.4 basis points to 4.21% and the two-year rate down 2.1 basis points at 3.89%.

The US manufacturing sector's contraction unexpectedly deepened this month as uncertainty reached its highest level since fall 2022, according to the Federal Reserve Bank of Dallas.

Moderna declined 8.9%, the worst performer on the S&P 500. The top vaccine official at the US Food and Drug Administration resigned late Friday, blaming the current US Secretary of Health and Human Services for seeking "subservient confirmation of his misinformation and lies." Novavax was down 8.4%, while BioNTech's American depositary receipts fell 4.1%. Pfizer was up 0.5%. Rocket Companies agreed to acquire home loan service provider Mr. Cooper Group in a $9.4 billion all-stock deal that is expected to boost Rocket's mortgages business. Rocket's shares declined 7.4%, while Mr. Cooper surged nearly 15%.

Tesla declined 1.7%. The electric-vehicle manufacturer's first-quarter delivery numbers, scheduled to be out later this week, will likely lag Wall Street's estimates, RBC Capital Markets said in a note emailed Friday.

West Texas Intermediate crude oil rose 3% to $71.44 a barrel. Gold increased 1.4% to $3,157.2 per troy ounce, while silver fell 0.2% to $34.75 per ounce.

Portfolio News

Active Trading Portfolio: NOTE: We will AVOID all active short term trades until we get past tariff liberation day on April 2nd. It is impossible to gauge risk at this point on a short term basis so best to stay out of the market. Check Out the Active Trading Portfolio.
Option Trading Portfolio:
- SPY Financed Bear Put Spread: On March 31st, we rolled out half of the $550 puts expiring in April to the May $535 strike effectively reducing our breakeven by $15 per share. We started the SPY April 17th $560/$550 ratio Put spread last Thursday March 27th.
  
  Check Out the Option Trading portfolio.
Buy and Hold Portfolio: Our long-term buy-and-hold portfolio has just gone slightly negative for the first time this year. Not surprising given the turmoil in the stock market. However we are only down 0.1%. Not bad when you consider the fact that the S&P 500 is down almost 11% from its highs recently. We will notify Pro and Premium members via WhatsApp immediately upon making new purchases. We have identified over 14 potential stocks for investment once the current sell-off concludes, but we will delay any new acquisitions until after the April 2nd retaliatory tariffs are implemented. Check out out the Buy and Hold Portfolio.