Trump’s pivot includes limitations on the impact of multiple tariffs on carmakers and a measure to allow carmakers to offset a portion of the levy for two years.

Investors are “encouraged by the Trump decision to be a little more flexible (…) with the autos,” said Sam Stovall of CFRA Research.

The Dow Jones Industrial Average finished 0.8% higher at 40,527.62.

The broad-based S&P 500 advanced 0.6%to 5,560.83, while the tech-rich Nasdaq Composite Index rose 0.6% to 17,461.32.

Stocks moved sideways on Monday after notching four straight positive sessions last week as Trump adopted a more conciliatory posture on the trade war with China and said he doesn’t plan to fire Federal Reserve Chair Jerome Powell.

Stovall predicted stocks could go higher.

“There’s definitely uncertainty, but I believe that the risk is to the upside, meaning that the market has already priced in the impact of the tariffs,” he said.

Among automakers General Motors fell 0.6%, Ford rose 1.3% and Stellantis gained 2.5%.

Among companies reporting earnings, Honeywell International jumped 5.4%, Coca-Cola advanced 0.8% and Pfizer won 3.2% while UPS shed 0.4%.