US Stocks Close Higher Amid Trade War Concerns and Economic Data

US stocks ended the trading session on Tuesday with gains, led by technology companies, as investors assessed the latest developments in the US-China trade war and fresh economic data.

The Dow Jones Industrial Average (DJI) rose by approximately 0.3%, while the benchmark S&P 500 (GSPC) increased by roughly 0.7%. The technology-heavy Nasdaq Composite (IXIC) jumped by nearly 1.4%, recovering some of Monday's losses.

Trade War Developments

US President Donald Trump's additional tariffs on Chinese imports went into effect at midnight, prompting Beijing to retaliate with levies of 15% on US coal and liquified natural gas, and 10% on crude oil, farm equipment, and some automobiles. The tit-for-tat measures heightened concerns about an escalation into a trade war that could damage both economies.

However, some on Wall Street interpreted China's response as showing restraint, opening the door to compromise. President Trump also announced that he would bring forward talks with Chinese President Xi Jinping, raising hopes for a diplomatic resolution.

Economic Data

Fresh data from the Bureau of Labor Statistics showed that job openings declined more than expected in December, coming in at 7.6 million. This decline eased concerns about a tight labor market and put pressure on the Federal Reserve to consider interest rate cuts in the face of persistent inflation.

Company Earnings

Several high-profile companies reported their quarterly results after the market closed.

* Alphabet (GOOG) shares fell by over 7% in after-hours trading after its cloud revenue missed expectations, despite strong performance in other segments.
* Chipotle (CMG) stock dropped by as much as 6% after reporting comparable sales that fell short of estimates.
* AMD (AMD) shares rose in after-hours trading after the company posted a strong sales forecast that eased concerns about an AI chip slowdown.
* Snap (SNAP) stock jumped by double digits after beating estimates on both the top and bottom lines and providing optimistic guidance for the upcoming quarter.

Other News

* China opened an antitrust investigation into Alphabet's Google.
* Disney (DIS) released its fiscal first quarter results, showing strong streaming momentum and box office success.
* Robinhood (HOOD) shares held on to gains despite the Commodity Futures Trading Commission requesting the company to suspend sports betting contracts.
* Fox (FOXA) announced plans to launch its own streaming service.
* Oil prices pared losses after China's retaliation against US tariffs, indicating that the market was weighing both economic and geopolitical factors.