US Stocks Gain on Tech Jump Amid Trade Tensions and Job Data
US stocks closed higher Tuesday, led by technology companies, as investors assessed the latest developments in the US-China trade war and the release of fresh labor market data.
The Dow Jones Industrial Average (^DJI) advanced 0.3%, the S&P 500 (^GSPC) rose 0.7%, and the Nasdaq Composite (^IXIC) jumped 1.4% to recoup some of Monday's losses.
Trade War Developments
China imposed tariffs on US coal and liquefied natural gas after President Donald Trump's additional 10% levies on Chinese imports. The tit-for-tat measures raise the risk of an escalation into a trade war that could damage both economies. However, some view the Chinese response as showing restraint, opening the door to compromise.
Job Market Data
Job openings declined more than expected in December, hitting 7.6 million, the lowest level since September. Economists note that the data indicates a "broadly stable" labor market, with the ratio of job openings to unemployed workers remaining at approximately 1 to 1.
Company Earnings
* Alphabet (GOOG): Shares fell 7% after-hours on missed cloud revenue expectations.
* AMD (AMD): Shares rose in after-hours trading after a strong sales forecast eased concerns about an AI chip slowdown.
* Snap (SNAP): Shares surged 15% after-hours on strong earnings and revenue guidance.
* Chipotle (CMG): Shares fell 6% after-hours on lower-than-expected comparable sales.
Other News
* Disney (DIS) is expected to report first-quarter earnings before the bell Wednesday, with investors focusing on park performance, streaming momentum, and potential cost concerns.
* Fox (FOXA) announced plans to launch its own streaming service by the end of the year, targeting cord-cutters and cord-nevers.
* Robert F. Kennedy Jr. cleared a key Senate committee vote in his bid to lead the Health and Human Services Department, raising concerns among vaccine manufacturers.