US Stocks Bounce Back on Tariff News
US stocks rose on Monday, led by gains in steel and aluminum companies following President Donald Trump's announcement of new tariffs on imports of those materials.
* The Dow Jones Industrial Average (^DJI) rose 0.2% after losing its most in nearly four weeks on Friday.
* The S&P 500 (^GSPC) gained roughly 0.6%.
* The tech-heavy Nasdaq Composite (^IXIC) advanced more than 1%, led by a surge in shares of AI chipmaker Nvidia (NVDA).
Investors are balancing Trump's pledge on Sunday to impose additional 25% tariffs on steel and aluminum from all countries with the potential impact on trade and inflation. The new tariffs are likely to benefit US steel companies, whose stocks jumped.
Cleveland-Cliffs (CLF) surged over 14%, Nucor (NUE) rose nearly 7%, and US Steel (X) gained 3%.
The gains suggest investors are becoming accustomed to Trump's trade salvos, which some see as a negotiation tactic.
However, concerns remain about the potential for higher inflation and interest rate increases, which could slow economic growth. The January Consumer Price Index reading due on Wednesday will be closely watched for clues.
Earnings season is also heating up, with 78 S&P 500 companies scheduled to report this week. McDonald's (MCD) reported better-than-expected same-store sales growth.
In other news:
* Electric vehicle maker Rivian opened up orders for its commercial van.
* Energy stocks gained as oil prices rallied.
* Long-term inflation expectations edged higher in January, according to a New York Fed survey.
* Economist Torsten Sløk warned of a "stagflationary shock" from a full-scale trade war.
* Donald Trump is reworking the US trade landscape on multiple fronts this week.
* GameStop stock surged after CEO Ryan Cohen met with bitcoin advocate Michael Saylor.
* Gold prices surged to new records amid tariff concerns.