Stocks power higher in latest lightning shift for markets

Stocks shook off morning losses on Monday and surged in the afternoon to send the Standard & Poor’s 500 index to its best day in a week. It’s the latest turn for a market suddenly prone to quick shifts, as investors question whether President Donald Trump will really risk a trade war.

The S&P 500 lost as much as 0.6 percent shortly after trading began, only to finish the day 1.1 percent higher after rising 29.69 points to 2,720.94.

It’s reminiscent of what happened Friday, when stocks reversed course on speculation that Trump was only making an opening bid when he promised to impose stiff tariffs on imported steel and aluminum, rather than a final offer.

The Dow Jones industrial average jumped 336.70, or 1.4 percent, to 24,874.76, and the Nasdaq composite gained 72.84, or 1 percent, to 7,330.70. Both came back from early-morning losses.

Trump took to Twitter again on Monday to defend the tariffs, which have riled trading partners around the world.

Later in the day, House Speaker Paul Ryan said that he is “extremely worried” about the consequences of a global trade war and urged the White House “to not advance with this plan.”

A trade war would hurt the global economy, said Emily Roland, head of capital markets research for John Hancock Investments.

“But right now, we think the impact should continue to be modest, as long as it’s all talk and no action,” she said.