US Stock Market Rises on First Day of Trump's Second Term
US stocks climbed on Tuesday as investors assessed President Donald Trump's initial executive orders and the potential impact of historic tariffs on Mexico and Canada. Key indices moved upwards, with the Dow Jones Industrial Average (^DJI) and the benchmark S&P 500 (^GSPC) gaining approximately 0.5% and 0.4% respectively. The Nasdaq Composite (^IXIC) also rose by 0.5%, buoyed by gains in Nvidia (NVDA) and other tech giants.
Investors brace for potential volatility in markets as Trump embarks on his second term with a focus on trade and energy policies. China received a reprieve as Trump refrained from implementing tariffs on Chinese imports. However, the mood shifted when Trump announced plans to impose 25% duties on Mexico and Canada from February 1st.
Meanwhile, the 10-year Treasury yield (^TNX) initially declined by 5 basis points, but has since recovered slightly. Bitcoin (BTC-USD) experienced a volatile ride, reaching a record high above $109,000 before falling sharply. It has since regained some ground, trading slightly higher at around $104,000.
Investors await the upcoming batch of quarterly earnings reports for further insights. Netflix (NFLX) is anticipated to deliver strong results, while Charles Schwab (SCHW) reported a 50% surge in earnings due to increased trading activity. D.R. Horton (DHI) exceeded expectations despite a subdued housing market, and 3M Company (MMM) issued optimistic full-year guidance.