  We provide a spectral sequence computing the extension groups of tautological
bundles on symmetric products of curves. One main consequence is that, if
$E\neq \mathcal O_X$ is simple, then the natural map
$\operatorname*{Ext}^1(E,E)\to \operatorname*{Ext}^1(E^{[n]},E^{[n]})$ is
injective for every $n$. Along with previous results, this implies that
$E\mapsto E^{[n]}$ defines an embedding of the moduli space of stable bundles
of slope $\mu\notin[-1,n-1]$ on the curve $X$ into the moduli space of stable
bundles on the symmetric product $X^{(n)}$. The image of this embedding is, in
most cases, contained in the singular locus. For line bundles on a
non-hyperelliptic curve, the embedding identifies the Brill--Noether loci of
$X$ with the loci in the moduli space of stable bundles on $X^{(n)}$ where the
dimension of the tangent space jumps. We also prove that $E^{[n]}$ is simple if
$E$ is simple.
