US Stocks Rise on First Trading Day of Trump's Presidency
US stocks surged on Tuesday, marking a positive start to the first trading day of President Donald Trump's second term. The Dow Jones Industrial Average (^DJI) jumped over 500 points, gaining 1.2%, surpassing the 44,000 level. The S&P 500 (^GSPC) rose 0.9%, while the tech-heavy Nasdaq Composite (^IXIC) climbed 0.6%.
The market's rise was attributed to investors' cautious optimism following Trump's first policy moves. Despite initial concerns about broad tariff hikes, Trump refrained from implementing them on the first day of his presidency. However, he hinted at the possibility of imposing 25% tariffs on Mexico and Canada starting February 1.
Tesla Falls as Electric Vehicle Policy Scrapped
Tesla (TSLA) stock declined by over 4% in early trading, reversing premarket gains after President Trump revoked a Biden-era policy mandating that half of new US cars manufactured by 2030 be electric. Other EV stocks, such as Lucid (LCID) and Rivian (RIVN), also faced losses.
Energy and Trade in Focus
The market was also influenced by Trump's energy and trade rhetoric. Trump signed an executive order declaring a "national energy emergency" to deregulate the industry and boost domestic production. This move weighed on oil prices, which fell due to concerns over a trade war impacting economic growth and consumption.
Earnings Season Continues
Several companies reported quarterly earnings, adding to the market's activity. Netflix (NFLX) shares surged 10% after-hours following strong subscriber growth and revenue beat. 3M Company (MMM) reported solid earnings, contributing to the Dow's rise.
Geopolitical Considerations
The ongoing geopolitical landscape also influenced market sentiment. The US dollar index initially dropped sharply after Trump avoided broad tariff action, but recovered as he hinted at potential tariffs on Mexico and Canada. Bitcoin (BTC-USD) pulled back from its record high after pro-cryptocurrency policies were not included in Trump's initial actions.
The market's reaction to the start of Trump's second term remains fluid, with investors closely monitoring policy developments and geopolitical events.