US stocks experienced a significant increase on Monday as investors were encouraged by reports suggesting that President Trump's upcoming tariffs would be more specific instead of broad. The S&P 500 index rose by 1.2% following a four-week decline. The Dow Jones Industrial Average increased by about 0.9%, while the Nasdaq Composite showed the highest gains, rising by 1.5%.

There are indications that the proposed reciprocal tariffs by the US could target a narrower range of products, as opposed to earlier concerns. This news, reported by Bloomberg and The Wall Street Journal, has somewhat alleviated worries about a potential trade war that could lead to inflation and economic slowdown.

The 10-year Treasury yield increased around four basis points to 4.29% as fears of a negative impact from tariffs on economic growth and global trade diminished, prompting a growing appetite for risk among investors.

Tesla's stock surged as it seems likely that Trump may not announce tariffs on the auto industry as anticipated. The technology sector also saw gains after Jack Ma's Ant Group revealed plans to reduce AI costs by utilizing alternative chips to Nvidia's.

Later in the day, investors will closely observe the initial data on US factory and services activity in March to assess the possibility of a recession. The release of the Personal Consumption Expenditures Index for February, the Federal Reserve's main inflation indicator, on Friday will be a key focus for the week.

Besides economic indicators, the market will also look out for quarterly earnings reports from Lululemon, Gamestop, and Dollar Tree throughout the week.