US Stocks Rally on Tech Gains Amid Trade Tensions and Jobs Data

Key Points:

* US stocks closed higher on Tuesday, driven by tech giants.
* Investors assessed China's swift retaliation to President Trump's additional tariffs.
* Job openings declined more than expected in December, signaling a potential labor market slowdown.

Market Summary:

The Dow Jones Industrial Average (^DJI) gained 0.3%, while the S&P 500 (^GSPC) rose 0.7%. The tech-heavy Nasdaq Composite (^IXIC) jumped 1.4% to recoup some of Monday's losses.

China's Response and Trade War Concerns:

Beijing swiftly imposed tariffs on US imports, raising concerns about an escalation into a trade war. However, some experts see China's response as showing restraint, opening the door to compromise. Trump also brought forward talks with Chinese leader Xi Jinping, aiming to ease tensions.

Tech Earnings and Sector Performance:

Alphabet (GOOG, GOOGL) reported disappointing cloud revenue in after-hours trading, prompting a drop in shares. Other notable tech companies posting earnings included Chipotle (CMG), which saw comparable sales miss estimates, and Snap (SNAP), which beat expectations and surged in after-hours trading.

Jobs Data and Fed Policy:

Job openings declined in December, with the ratio of openings to unemployed workers still hovering around 1 to 1, indicating a "healthy" labor market. This data suggests the Federal Reserve may adopt a more cautious approach to interest rate cuts amid concerns about inflation.

Other News:

* Disney (DIS) is set to report earnings with updates on streaming and park performance.
* Robinhood (HOOD) shares rose despite the Commodity Futures Trading Commission (CFTC) requesting the company to suspend its sports betting product.
* Fox (FOXA) announced plans to launch its own streaming service.
* Vaccine stocks Moderna (MRNA), Pfizer (PFE), and BioNTech SE (BNTX) fell after Robert F. Kennedy Jr.'s nomination to the Health and Human Services Department advanced in the Senate.
* Palantir (PLTR) shares surged after the company reported strong earnings and revenue forecasts.