US stocks closed higher Monday, boosted by news that President Donald Trump's administration may scale back upcoming tariffs.

A White House official told AFP that the sector-specific levies "may or may not happen" as planned on April 2, adding that the situation remains fluid.

The Dow Jones Industrial Average rose 1.4 percent, closing at 42,583.32, while the S&P 500 gained 1.8 percent to finish at 5,767.57. The Nasdaq Composite surged 2.3 percent, closing at 18,188.59.

Steve Sosnick of Interactive Brokers said the news surrounding tariffs "definitely" drove the increase in Wall Street stocks.

"Investors clearly hate the idea of tariffs," he said. "So any news that implies that the burden of tariffs will be lighter than expected will be taken as a positive by the market."

Among individual stocks, Tesla surged 11.9 percent, with traders returning to the volatile stock.

United Airlines also saw a 7.2 percent jump in its share price after announcing it would raise fees for certain credit cards and airline lounges.