*

Focus on tariffs, data and Fed

*

Trump to announce extensive tariffs on Wednesday

(Updates to market close)

By David French

March 31 (Reuters) - The S&P 500 and the Dow Jones

Industrial Average ended higher on Monday, as the benchmarks

temporarily shook off the uncertainty around the Trump

administration's upcoming tariff plans which had dragged down

U.S. equity markets through the month of March.

Global stocks had earlier tumbled, gold prices scaled new

highs and U.S. government bonds climbed after U.S. President

Donald Trump said on Sunday that expected tariffs he is set to

announce on Wednesday will include all nations.

He has already imposed tariffs on aluminum, steel and autos,

along with increased tariffs on goods from China.

"Investors are parsing every single word coming out of the

administration right now that has anything tangentially to do

with trade," said Michael Reynolds, vice president of investment

strategy at Glenmede.

Reynolds noted it is not just the details of the tariffs

themselves being unveiled on April 2, but markets are hoping to

know the process through which tariffs will be deployed. More

certainty around the rules of the road could actually be a good

thing for markets, he added.

The uncertainty around trade policy, tariffs and the Trump

administration has resulted in U.S. stock markets selling off so

far this year. The prospect of broad swathes of tariffs has

raised fears of a global trade war that would hurt economic

growth and spur inflation.

The three major U.S. indexes recorded sharp monthly and

quarterly losses.

However, on Monday, the Dow traded up, while the S&P 500

also rallied from negative territory in the afternoon session to

post a higher close.

According to preliminary data, the S&P 500

gained 31.68 points, or 0.57%, to end at 5,611.93 points,

while the Nasdaq Composite lost 28.03 points, or 0.16%,

to 17,294.96. The Dow Jones Industrial Average

rose 415.75 points, or 1.00%, to 41,999.65.

Financial stocks helped boost the S&P 500. Both Discover

Financial Services ( DFS ) and Capital One Financial ( COF )

advanced, as investors bet their merger would ultimately be

approved.

Tech stocks suffered from some weakness, including Nvidia ( NVDA )

and Microsoft ( MSFT ) trading down, as investors

worried about companies' spending plans for artificial

intelligence.

Tesla fell after investment bank Stifel lowered the

electric-vehicle maker's delivery forecast ahead of Wednesday's

first-quarter report.

The S&P 500 consumer staples sector, often

considered a safe haven within stock markets, was higher, while

the energy index advanced, tracking a jump in crude

prices.

The domestically focused Russell 2000 Index was down.

The CBOE Volatility Index, Wall Street's so-called

fear gauge, jumped to a two-week high.

As a result of tariff uncertainties, Goldman Sachs raised

the probability of a U.S. recession to 35% from 20%, cut its

year-end target for the S&P 500 to 5,700, and forecast more

interest rate cuts by the Federal Reserve.

Focus this week will also be on economic data, including ISM

business activity surveys and the crucial non-farm payrolls

report. Also due this week are speeches from several U.S.

central bank officials, including Fed Chair Jerome Powell.

Drugmakers' shares slid after reports the U.S. Food and Drug

Administration's top vaccine official had been forced to resign.

Moderna ( MRNA ) dropped, as did Pfizer ( PFE ).

Gene therapy companies Taysha Gene Therapies ( TSHA ) and

Solid Biosciences ( SLDB ) both fell.

In deals news, Rocket Companies ( RKT ) was down after the

mortgage lender said it agreed to a $9.4 billion acquisition of

Mr Cooper Group ( COOP ). The announcement, though, sent the

mortgage servicer's stock up.