US Stock Market Bounces Back Amid Tariff Concerns
Overview
US stocks rebounded on Monday, February 10, 2025, driven by tech and energy stocks. Investors shrugged off President Trump's latest tariff threats and looked ahead to the week's economic data and earnings reports.
Key Market Moves
* The Dow Jones Industrial Average (^DJI) gained nearly 0.4%.
* The S&P 500 (^GSPC) rose roughly 0.6%.
* The Nasdaq Composite (^IXIC) popped nearly 1%.
Tariff Threats Overshadowed
Despite President Trump's announcement of new 25% tariffs on steel and aluminum imports from all countries, investors seemed to become accustomed to the trade salvos. Some analysts suggested that the tariffs were seen as negotiation tactics rather than a threat to the economy.
Steel and Aluminum Stocks Surge
Steel-related stocks jumped on the news of the impending tariffs. Cleveland-Cliffs (CLF), Nucor (NUE), and US Steel (X) all saw gains. Aluminum producer Alcoa's (AA) stock also gained.
Energy and Tech Outperform
Energy stocks outperformed as oil prices rebounded from three weeks of decline. Tech stocks also performed well, with semiconductor stocks, including AI chip giant Nvidia (NVDA), surging.
Economic Indicators
Investors kept an eye on economic indicators this week, including the January Consumer Price Index and the New York Fed's survey on long-term inflation expectations, which ticked up to 3%.
Earnings Season Heats Up
78 S&P 500 companies are set to report earnings this week. McDonald's (MCD) shares rose after same-store sales grew, exceeding expectations. Super Micro Computer (SMCI) and Airbnb (ABNB) are expected to report this week.
Conclusion
US stocks rebounded on Monday as investors remained optimistic despite trade concerns. Steel and aluminum stocks surged on the anticipation of tariffs, while energy and tech stocks outperformed. Investors are keeping an eye on economic data and earnings reports in the coming days.