US Stocks Dip Amid Tariff Concerns and Inflation Focus
US stocks experienced a slight decline on Tuesday as investors braced for additional tariff announcements from President Donald Trump and shifted attention toward inflation data.
Market Performance
By mid-morning, the Dow Jones Industrial Average (^DJI) was down 0.2%, the S&P 500 (^GSPC) had dropped 0.1%, and the Nasdaq Composite (^IXIC) was off by 0.1%.
Tariff Uncertainty
The market remains cautious ahead of Trump's announcement of universal like-for-like tariffs this week. The president previously imposed 25% tariffs on steel and aluminum imports from Canada and Mexico, raising concerns about potential impacts on corporate earnings and global trade.
Inflation Focus
Investors are closely monitoring testimony from Federal Reserve Chair Jerome Powell, who began a two-day appearance before Congress on Tuesday. His remarks will be scrutinized for any insights on how tariffs could affect inflation pressures.
Earnings Reports
Coca-Cola (KO) reported better-than-expected fourth-quarter results, driven by strong soda demand despite higher prices. Shopify (SHOP) recovered from pre-market losses after announcing lower first-quarter profit forecasts but better-than-anticipated holiday sales.
Market News
* Gold (GC=F) set a new record high as investors sought safe havens amid uncertainty.
* Elon Musk's bid to acquire OpenAI was rejected by the AI nonprofit's CEO.
* Meta (META) has begun laying off workers as part of CEO Mark Zuckerberg's plan to prioritize AI talent.
* Powell reiterated that the Fed is not considering rate cuts in the near term.
* Coca-Cola executives discussed the potential impact of tariffs on commodities and their ability to mitigate costs.
* Oil futures rose amid signs that US sanctions on Russian crude are reducing production.
* The start of Trump's second term has brought unexpected policy moves that have unsettled expectations at financial institutions.
* Asian stock markets fell as investors assessed the impact of US tariffs on steel and aluminum.