Stocks soar as trade war fears ease

Trump official: Tariffs won't hurt the economy
Trump official: Tariffs won't hurt the economy

Fears of a trade war eased on Wall Street — for a day, at least.

The Dow climbed 336 points on Monday after House Speaker Paul Ryan and other top Republicans broke with the White House over President Trump's planned steel and aluminum tariffs.

"We are extremely worried about the consequences of a trade war and are urging the White House to not advance with this plan," Ryan spokeswoman AshLee Strong said in a statement Monday morning.

Investors seemed to be betting that GOP opposition could soften Trump's position.

"You're starting to get blowback not just from Corporate America but from Trump's own party," said Michael Block, chief market strategist at Rhino Trading Partners. "He's getting pushback and a reminder that if markets and the economy don't go the right way, it's going to endanger the GOP's chances in November."

Related: Trump tariffs: Another anti-business decision by the CEO president

Caterpillar (CAT) and Boeing (BA), two companies that would take hits if the tariffs led to a rise in steel prices, led the Dow on Monday. The average snapped a four-day losing streak and turned positive on the year.

Trump announced on Thursday that his administration would impose a 25% tariff on steel imports and a 10% tariff on aluminum.

Top American allies, including Canada and the European Union, have pledged to retaliate if Trump follows through on the plan. White House trade adviser Peter Navarro said on CNN's "State of the Union" on Sunday that no countries will be excluded from the tariffs.

Related: Ryan, other conservatives fear trade war from Trump's tariffs

Wall Street was spooked by the tariffs and the potential that they will set off a global trade war. The Dow lost 491 points on Thursday and Friday. Trump escalated those fears on Friday by writing on Twitter, "Trade wars are good, and easy to win."

Asked about Ryan's position on Monday, Trump told reporters, "No, we're not backing down."

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