New York CNN  — 

US stocks rose Monday morning as traders rallied on the Trump administration’s exemption for tariffs on smartphones, computers and various electronics imported from China.

The Dow rose 480 points, or 1.2%. The broader S&P 500 rose 1.75% and the tech-heavy Nasdaq Composite was 2.4% higher.

US stock futures gained over the weekend after investors realized on Saturday that the Trump administration issued tariff exemptions for electronics imported from China, according to a US Customs and Border Protection notice posted late Friday.

The exemptions come after President Donald Trump on Wednesday imposed a tariff rate of 145% on imports from China. However, the exemptions do not apply to the 20% tariff on imports from China over the country’s role in the fentanyl trade. Tech stocks like Apple rallied Monday morning.

While stocks rallied, confusion lingers around the trade war with China: Commerce Secretary Howard Lutnick on Sunday said the exemptions for electronics are only a temporary reprieve. Those products will face separate levies, according to Lutnick.

“(Electronics are) exempt from the reciprocal tariffs, but they’re included in the semiconductor tariffs, which are coming in probably a month or two,” Lutnick told ABC News on Sunday.

US stocks are coming off a wild two weeks. Trump’s rollout of his so-called “reciprocal tariffs” and subsequent 90-day pause on most “reciprocal” tariffs has sent US stocks on a roller coaster.

The S&P 500 fell 9% across the first week of April, its worst week since 2020, before rallying 5.7% the second week of April, its best week since 2023. The stock market on Wednesday posted its third-biggest single-day gain in modern history after Trump announced a 90-day pause on most “reciprocal” tariffs. Despite the surge, the S&P 500 is still trading below its closing price on April 2, just before Trump initially announced the reciprocal tariffs.

Wall Street will look to continue a rally, although uncertainty is abound. The lack of clarity about Trump’s trade policy has kept traders in the dark about how to best position their investments — and raised concerns about US economic growth.

“While any delay of tariffs is beneficial on the margin, it is not the same as their removal,” analysts at Morgan Stanley said in a Friday note. “History suggests that elevated and prolonged uncertainty that weighs on business confidence can have detrimental effects on business spending and hiring.”

Goldman Sachs CEO David Solomon said in an earnings press release Monday that the climate is a “markedly different operating environment than earlier this year.”

Billionaire Ray Dalio over the weekend said Trump’s tariffs have helped push the US close to a recession — or perhaps even “something worse.”

“Right now, we are at a decision-making point and very close to a recession,” the hedge fund manager told NBC News Sunday. “And I’m worried about something worse than a recession if this isn’t handled well.”

Analysts at Citi on Friday lowered their year-end target for the S&P 500 to 5,800 from 6,500, joining a group of Wall Street giants in cutting their forecasts for corporate earnings and growth this year amid an uncertain tariff environment.

“No doubt, the goldilocks sentiment in place entering this year has given way to abject uncertainty,” analysts at Citi said in a Friday note.

Meanwhile, gold has soared this year as investors flock to safe havens. The yellow metal on Friday surpassed a record $3,200 a troy ounce and has surged more than 21% this year. Analysts at Goldman Sachs on Friday raised their year-end price forecast for gold to $3,700, underpinning the heightened demand for bullion amid economic uncertainty.

This is a developing story and will be updated.