US Stocks Rise on Tech Strength Amid Trade War Uncertainty
US stocks closed higher on Tuesday, driven by gains in technology shares, as investors weighed the latest developments in the escalating US-China trade war and fresh jobs data.
Market Movers
* Dow Jones Industrial Average (^DJI): +0.3%
* S&P 500 (^GSPC): +0.7%
* NASDAQ Composite (^IXIC): +1.4%
Trade War Developments
China swiftly retaliated to President Donald Trump's additional 10% tariffs on Chinese imports by imposing duties on US coal, liquified natural gas, crude oil, and other goods. This escalation raised concerns about a potential trade war, but some analysts saw the Chinese response as a sign of restraint that could open the door to compromise.
Jobs Data
Job openings declined more than expected in December, hitting a six-month low. Despite the decline, economists believe the labor market remains robust, with a healthy ratio of job openings to unemployed workers.
Tech Sector Performance
Big Tech companies led the gains in the technology sector.
* Alphabet (GOOG, GOOGL): +2.5%
* Apple (AAPL): +1%
* Microsoft (MSFT): +1%
* Nvidia (NVDA): +2%
Earnings Updates
* Palantir (PLTR): Soared 25% on strong earnings, exceeding expectations for quarterly and annual revenue.
* Snap (SNAP): Jumped 15% in after-hours trading, topping estimates for revenue, active users, and earnings.
* Chipotle (CMG): Dipped after comparable sales missed estimates.
* Alphabet (GOOG, GOOGL): Fell 7% after-hours, missing cloud revenue expectations.
Other Notable News
* Spotify (SPOT): Rose 9% before the bell, reporting its first full year of profit and beating revenue expectations.
* Robinhood (HOOD): Faced scrutiny from regulators over its plans to offer event contracts for sports betting.
* Fox (FOXA): Announced plans to launch its own direct-to-consumer streaming service.
* Vaccine Stocks: Moderna (MRNA), Pfizer (PFE), and BioNTech SE (BNTX) declined after Robert F. Kennedy Jr. cleared a key committee vote in his nomination to lead the Health and Human Services Department.