Dow gains 400 points, stocks reverse losses as markets cap worst quarter since 2022

US stocks rebounded Monday to cap a volatile month and quarter as trade-war worries mount in the run-up to President Trump's tariff bonanza later in the week.

The tech-heavy Nasdaq Composite closed down about 0.1%, while the S&P 500 recuperated losses of as much as 1.7% to close up nearly 0.6%. The Dow Jones Industrial Average erased early morning losses to gain 1%, or about 400 points.

Markets wrapped up March on a woeful note after a rough month and quarter beset by Trump's fast-evolving tariff policy. Last week was the fifth in six weeks that the Nasdaq Composite and S&P 500 ended the week in the red. The benchmark index is down over 4.5% to start the year while the Nasdaq has lost over 10%, finishing with their worst quarters since 2022.

Some of the biggest-name megacaps have led the decline. Nvidia fell Monday as it has neared a 20% loss so far this year, while Tesla has lost more than 35%.

Stocks have sold off amid concerns about the economic impact of Trump's trade offensive, as uncertainty about its scope dampens market appetite for risk. Investors are now bracing for the broadest set yet of US tariffs, set to be unveiled on April 2 — described as “Liberation Day” by the president.

Trump said he plans to target "all countries" with reciprocal tariffs from the start, dampening hopes for a more limited push. A report from The Washington Post this weekend suggested the president is pushing advisers to go even "bigger" in imposing the levies.

Meanwhile, markets are still keeping watch for signs of economic stress after stocks fell in the wake of a hotter-than-expected read on "core" PCE — the Federal Reserve's preferred measure of inflation. The March jobs report due on Friday is the data highlight of the week, with updates on private payrolls and job openings also on the docket.