Stocks closed higher yesterday with all of the major indexes solidly in the green. But not before stocks dipped briefly in the red shortly after noon.

Weekend reports that the Trump administration announced exemptions from reciprocal tariffs on smartphones, computers, semiconductors, other electronic components and devices, flat panel TV displays, and solar cells continued last week's relief rally yesterday.

As you know, last Wednesday, President Trump announced a 90-day pause on reciprocal tariffs for most countries (sans China) in an effort to let negotiations take place, which are expected to sharply reduce tariffs on many countries (and lead to more access to U.S. goods).

But tariffs on China have been ratcheted up to as high as 145% on some products and 125% on others. China imposed retaliatory tariffs of 125% on the U.S.

While the 10% base tariffs still stand, the more onerous reciprocal tariffs on other countries, excluding China, led to a massive rally.

We have not heard much from China on the White House's exemptions.

But the administration poured a little bit of cold water on the exemptions yesterday when they said these too were temporary and that the White House would be announcing specific tariffs on semiconductors in the "very near future."

Nonetheless, the market seems to expect these to be far less severe than what had come before it.

In other news, we learned yesterday that the U.K. has suspended some tariffs on the U.S. for a range of goods including juices, pasta, batteries and plastics for the next two years.

I expect we'll hear more of these types of stories in the coming days, weeks and months.

On the economic report-front today, we'll get the Empire State Manufacturing Index, and Import and Export Prices.

We'll also hear from Fed policymakers Thomas Barkin and Lisa Cook as they speak at their respective engagements throughout the day.

Note, we have a shortened trading week this week as the markets will be closed on Friday, 4/18, for Good Friday.

Should be another active week, made all the more interesting with it being crammed into just 4 trading days.

See you tomorrow,