*

S&P March flash Composite PMI at 53.5 vs 51.6 in Feb

*

Lockheed Martin ( LMT ) drops after brokerage downgrade

*

Crypto stocks gain as bitcoin rallies

(Updates with end of session)

By Noel Randewich

March 24 (Reuters) - The S&P 500 rose sharply to end at

its highest in over two weeks on Monday, lifted by Nvidia ( NVDA ) and

Tesla following signs that the Trump administration might take a

more measured approach on tariffs against U.S. trading partners.

U.S. President Donald Trump had anticipated applying broad

levies starting on April 2 but a set of sector-specific tariffs

is now likely to be excluded, according to media reports over

the weekend citing administration officials.

A Trump administration official on Monday cautioned that the

situation was fluid and no final decisions had been made.

Investors scooped up battered technology shares, with Nvidia ( NVDA )

and Advanced Micro Devices ( AMD ) both rallying. Tesla

surged, recovering some of its recent steep decline,

helped by optimism about scaled back U.S. tariffs.

Financial markets have been volatile in recent weeks due to

fears of inflation and an economic downturn after Trump

announced a series of tariffs last month on major U.S. trading

partners, including China, Mexico and Canada.

The S&P 500 has recovered about 4% from its recent low on

March 13, and it remains down around 6% from its February 19

record high close.

"Investors are experiencing a slight sigh of relief, but at

the same time they are cynical about how long this may last,"

said Sam Stovall, chief investment strategist at CFRA

Research. "The causes of this manufactured correction have not

evaporated. They are tariffs and what the impact of tariffs

could be on economic growth, inflation and corporate profits."

Several companies have cited tariff uncertainty as they

lowered their forecasts for upcoming quarters. Data compiled by

LSEG as of Friday showed earnings of companies in the S&P 500

are expected to grow by 10.5% in 2025, down by 3.5 percentage

points since the beginning of the year.

According to preliminary data, the S&P 500

gained 99.18 points, or 1.75%, to end at 5,765.15 points,

while the Nasdaq Composite gained 404.54 points, or

2.27%, to 18,188.59. The Dow Jones Industrial Average

rose 585.86 points, or 1.40%, to 42,571.21.

A survey showed U.S. business activity picked up in March,

while growing fears over import tariffs and deep government

spending cuts continued to weigh on sentiment. Investors are

awaiting data this week, including the Personal Consumption

Expenditure (PCE) price index - the Federal Reserve's preferred

inflation gauge - on Friday.

Dun & Bradstreet ( DNB ) climbed after the data and

analytics provider agreed to be acquired by private equity firm

Clearlake Capital in a $7.7 billion deal.

Lockheed Martin ( LMT ) fell after BofA Global Research

downgraded the weapons maker to "neutral" from "buy".

Crypto stocks rallied with a 4% rise in bitcoin prices

, with MicroStrategy ( MSTR ) and Coinbase both

advancing.