US Stocks Mixed as China Retaliates on Tariffs
US stocks opened mixed on Tuesday as investors assessed China's immediate response to President Trump's additional tariffs, raising concerns about a trade war.
The Dow Jones Industrial Average (^DJI) edged down roughly 0.1%, while the S&P 500 (^GSPC) opened nearly flat. The tech-heavy Nasdaq Composite (^IXIC) rose about 0.2% after a losing day for stocks.
China swiftly reacted to Trump's 10% additional levies on Chinese imports by imposing tariffs of 15% on US coal and liquefied natural gas, and 10% on crude oil, farm equipment, and vehicles. These measures heighten the risk of a trade war that could damage both economies.
However, some analysts see the Chinese response as a sign of restraint that could lead to compromise, similar to the US tariff postponement deals with Mexico and Canada.
Key Highlights:
* The US dollar index (DX-Y.NYB) fell 0.6% as concerns eased.
* Alphabet (GOOG) shares rose over 1% in anticipation of its earnings report.
* Palantir (PLTR) shares surged 18% after exceeding revenue forecasts.
* Job openings in December fell more than expected, according to the JOLTS report.
* Spotify (SPOT) shares jumped after posting its first full-year profit.
* China launched an antitrust investigation into Google and put PVH and Illumina on its "unreliable entity list."
* Europe's stock markets were generally flat, with investors monitoring the US-China tariff situation.
* Gold prices rose near record highs as investors sought stability amid trade tensions.
* PepsiCo (PEP) shares declined in pre-market trading due to concerns about meeting its guidance targets.
* Trump announced a 30-day pause on tariffs against Canada and Mexico, providing temporary relief to markets.