US STOCKS-S&P 500, Dow finish higher at the end of March madness

By David French

March 31 (Reuters) - The S&P 500 and the Dow Jones Industrial Average ended higher on Monday, as the benchmarks temporarily shook off the uncertainty around the Trump administration's upcoming tariff plans which had dragged down U.S. equity markets through the month of March.

Global stocks had earlier tumbled, gold prices scaled new highs and U.S. government bonds climbed after U.S. President Donald Trump said on Sunday that expected tariffs he is set to announce on Wednesday will include all nations.

He has already imposed tariffs on aluminum, steel and autos, along with increased tariffs on goods from China.

"Investors are parsing every single word coming out of the administration right now that has anything tangentially to do with trade," said Michael Reynolds, vice president of investment strategy at Glenmede.

Reynolds noted it is not just the details of the tariffs themselves being unveiled on April 2, but markets are hoping to know the process through which tariffs will be deployed. More certainty around the rules of the road could actually be a good thing for markets, he added.

The uncertainty around trade policy, tariffs and the Trump administration has resulted in U.S. stock markets selling off so far this year. The prospect of broad swathes of tariffs has raised fears of a global trade war that would hurt economic growth and spur inflation.

The three major U.S. indexes recorded sharp monthly and quarterly losses.

However, on Monday, the Dow traded up, while the S&P 500 also rallied from negative territory in the afternoon session to post a higher close.

According to preliminary data, the S&P 500 .SPX gained 31.68 points, or 0.57%, to end at 5,611.93 points, while the Nasdaq Composite .IXIC lost 28.03 points, or 0.16%, to 17,294.96. The Dow Jones Industrial Average .DJI rose 415.75 points, or 1.00%, to 41,999.65.

Financial stocks helped boost the S&P 500. Both Discover Financial Services DFS.N and Capital One Financial COF.N advanced, as investors bet their merger would ultimately be approved.

Tech stocks suffered from some weakness, including Nvidia NVDA.O and Microsoft MSFT.O trading down, as investors worried about companies' spending plans for artificial intelligence.

Tesla TSLA.O fell after investment bank Stifel lowered the electric-vehicle maker's delivery forecast ahead of Wednesday's first-quarter report.

The S&P 500 consumer staples sector .SPLRCS, often considered a safe haven within stock markets, was higher, while the energy index .SPNY advanced, tracking a jump in crude prices.

The domestically focused Russell 2000 Index .RUT was down.

The CBOE Volatility Index .VIX, Wall Street's so-called fear gauge, jumped to a two-week high.

As a result of tariff uncertainties, Goldman Sachs raised the probability of a U.S. recession to 35% from 20%, cut its year-end target for the S&P 500 to 5,700, and forecast more interest rate cuts by the Federal Reserve.

Focus this week will also be on economic data, including ISM business activity surveys and the crucial non-farm payrolls report. Also due this week are speeches from several U.S. central bank officials, including Fed Chair Jerome Powell.

Drugmakers' shares slid after reports the U.S. Food and Drug Administration's top vaccine official had been forced to resign. Moderna MRNA.O dropped, as did Pfizer PFE.N.

Gene therapy companies Taysha Gene Therapies TSHA.O and Solid Biosciences SLDB.O both fell.

In deals news, Rocket Companies RKT.N was down after the mortgage lender said it agreed to a $9.4 billion acquisition of Mr Cooper Group COOP.O. The announcement, though, sent the mortgage servicer's stock up.