NEW YORK — Stocks surged Monday as Wall Street shook off recent jitters and responded to signs of a more measured approach to tariffs from the White House.

The S&P 500 rose 1.8% to close at 5,767.57. The Dow Jones Industrial Average added 1.4%, finishing at 42,583.32. The Nasdaq Composite jumped 2.3%, closing at 18,188.59.

Gains were broad. More than 80% of the stocks in the S&P 500 ended higher. Nearly every sector advanced, with tech leading the way.

Tesla soared 11.9%, notching the biggest gain in the S&P 500. Nvidia rose 3.2%, continuing its red-hot streak. Apple climbed 1.1%, while Meta and Alphabet also closed higher.

Markets got a jolt of optimism from reports suggesting the Biden administration may pursue more targeted trade measures instead of blanket tariffs. The prospect of sector-based tariffs — possibly on automobiles, lumber, or semiconductors — helped calm fears of an all-out trade war.

“There’s relief on the Street that we might not see sweeping, economy-wide tariffs,” said one portfolio manager. “Investors want certainty, and this shift signals a more focused strategy.”

Monday’s rally came after a choppy few weeks. Investors have been juggling inflation data, Federal Reserve signals, and global trade tensions.

Last week, Fed Chair Jerome Powell reaffirmed the central bank’s cautious stance, saying officials need more confidence that inflation is under control before cutting interest rates. Markets had hoped for cuts by mid-year, but recent data has complicated that timeline.

Still, the Fed isn’t raising rates further — and that’s a positive sign for equities. Lower expectations for aggressive rate hikes have supported recent gains, especially in rate-sensitive sectors like tech.

“The Fed is clearly in wait-and-see mode,” said an economist at a New York-based investment firm. “That’s good enough for markets for now.”

Investors are also watching corporate earnings. With the majority of S&P 500 companies having reported first-quarter results, earnings growth has been stronger than expected.

Several big names are set to report this week, including Nike, Micron, and Walgreens. Strong results from these firms could add fuel to the rally.

Despite Monday’s gains, the broader picture remains mixed. The S&P 500 is still down 1.9% for the year. The Nasdaq has dropped 5.8%, while the Russell 2000 — which tracks smaller companies — has declined 5.4%.

Only the Dow has managed to stay in positive territory year-to-date, with a slim gain of 0.1%.

Energy stocks rose as oil prices climbed. U.S. crude settled up 1.5% at $82.20 per barrel. Brent crude, the international benchmark, rose 1.3% to $86.45.

Gold prices edged higher, closing at $2,188 an ounce. The 10-year Treasury yield slipped to 4.21% from 4.24% late Friday, reflecting modest demand for safe-haven assets.

Trading volume was slightly above average, with roughly 10.2 billion shares exchanged on U.S. exchanges.

The next market catalyst could come Friday with the release of the Personal Consumption Expenditures (PCE) price index — the Fed’s preferred inflation gauge.

If the data shows cooling inflation, it could revive hopes for a rate cut by summer. But if inflation remains sticky, investors may need to temper their expectations.

So far, the market has shown resilience. The tech sector, in particular, has proven its strength, bouncing back from early-year weakness.

“Tech isn’t just about hype anymore — it’s producing real earnings,” said a senior analyst. “And investors are starting to reward that again.”

In the meantime, geopolitical risks remain. Tensions in the Middle East and ongoing uncertainty in China’s economy continue to pose threats to global growth.

Still, Monday’s rally showed that markets are willing to look past short-term noise — at least for now.

Investors will be watching closely to see if this momentum holds.

For now, Wall Street is breathing a bit easier.