LIVE MARKETS-US stocks turn higher though tariff uncertainty remains

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U.S. STOCKS TURN HIGHER THOUGH TARIFF UNCERTAINTY REMAINS

Wall Street ended higher on Monday, recovering from earlier losses after President Donald Trump said he plans to double tariffs on imported steel and aluminum.

Trump’s comments late on Friday added to uncertainty over trade policy and concerns that higher trade levies will hurt U.S. economic growth and add to inflation.

Optimism that tariffs will be lower than initially feared, however, has boosted stocks in recent weeks after deals were struck with China and the European Union to delay increases while the countries negotiated trade agreements.

President Trump and Chinese leader Xi Jinping will likely speak this week, days after Trump accused China of violating an agreement to roll back tariffs and trade restrictions.

Legal challenges to tariffs are also adding to uncertainty over the trade policies. The Trump administration on Monday asked a U.S. appeals court to pause a second court ruling that found the president had exceeded his authority by imposing the levies.

The Federal Reserve, meanwhile, is expected to keep rates unchanged for the next several months as it waits to see the affects of tariffs on the economy, with Fed policymakers concerned that they will reignite price pressures.

Chicago Fed President Austan Goolsbee said on Monday, however, he continues to think the U.S. central bank will be able to lower short-term borrowing costs after the "dirt in the air" of uncertainty from tariff policies gets cleared up.

The Nasdaq Composite IXIC was the strongest major index, gaining 0.67%. The S&P 500 .SPX ended up 0.41% and the Dow Jones Industrial Average .DJI rose 0.08%.

Energy .SPNY led sector gainers on higher oil prices as wildfires burning in Canada's oil-producing province threatened supply. Industrials .SPLRCI were the sole loser.

Here is Monday's closing market snapshot:

(Karen Brettell)

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