Nvidia Inc. is trading higher Monday as semiconductor stocks react to reports that the U.S. may scale back some upcoming tariffs.

What To Know: The Biden administration had planned new trade restrictions set to take effect on April 2, but sources indicate these measures may be narrowed, reducing the impact on certain industries, including semiconductors.

The news sparked a rally in chip stocks, which have been under pressure due to fears of increased costs and supply chain disruptions. However, broader economic data suggests tariffs are already driving up input costs.

The latest S&P Global data shows that business input prices are rising at the fastest pace in nearly two years, with manufacturers bearing the brunt. Tariffs and labor costs are the main contributors, forcing companies to raise prices.

The U.S. Composite PMI rose to 53.5 in March from 51.6, driven by a rebound in services, which jumped to 54.3. Manufacturing weakened, slipping into contraction at 49.8. Business confidence is down, with companies citing policy uncertainty and higher costs. Input prices are rising at the fastest rate in nearly two years due to tariffs and labor costs, with manufacturers passing these expenses to consumers.

NVDA Price Action: Nvidia ( NVDA ) shares were up 3.25% at $121.49 at the time of writing, according to Benzinga Pro.

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