US Stocks Rise on Trump's First-Day Orders and Tariffs
Overview
US stocks experienced an upward trend on Tuesday as investors reacted to President Donald Trump's executive orders issued on his first day of his second term. Interest centered on the possible implementation of tariffs on Mexico and Canada.
Market Performance
* Dow Jones Industrial Average (^DJI) rose 0.6%.
* S&P 500 (^GSPC) gained 0.4%.
* Nasdaq Composite (^IXIC) increased by 0.1%, with Nvidia (NVDA) remaining just above flat.
Trump's Executive Orders
* Trump issued 78 executive orders, including a move to revoke President Biden's mandate for 50% of new US cars to be electric by 2030.
* This move led to a decline in EV stocks such as Lucid (LCID) and Rivian (RIVN), while General Motors (GM) and Ford (F) stocks rose.
Tariffs on Mexico and Canada
* Trump indicated the potential imposition of 25% tariffs on imports from Mexico and Canada starting February 1.
* This announcement shifted the market sentiment after an initial period of relief following the absence of widespread tariff hikes on Trump's first day.
Other Market News
* 10-year Treasury yield (^TNX) fell 4 basis points to 4.57%.
* Bitcoin (BTC-USD) briefly reached a record high above $109,000 but later faced a decline.
* Netflix (NFLX) is expected to report strong quarterly earnings.
* Charles Schwab (SCHW) reported a near 50% increase in earnings due to increased trading activity.
Outlook
Investors remain alert to the potential impact of Trump's policy agenda, including energy and trade issues. The upcoming release of quarterly earnings reports will provide further insights for market participants.