US Stocks Rebound After Trump Tariff Threat
US stocks bounced back on Monday as investors downplayed President Trump's latest tariff threats, including new levies on steel and aluminum imports. The Dow Jones Industrial Average (^DJI) gained 0.4%, while the S&P 500 (^GSPC) rose 0.6%. The Nasdaq Composite (^IXIC) surged 1%, led by gains in tech and energy stocks.
Tariff Impact on Steel and Aluminum Industries
Investors weighed Trump's announcement to impose 25% tariffs on steel and aluminum from all countries, including existing duties. Steel-related stocks surged in response, with Cleveland-Cliffs (CLF), Nucor (NUE), and US Steel (X) all climbing. Aluminum producer Alcoa (AA) also benefited.
Tech and Energy Stocks Lead Gains
The tech sector outperformed, with chipmakers Nvidia (NVDA) and Intel (INTC) posting strong gains. Energy stocks also gained ground, boosted by a recovery in oil prices. The S&P 500 Energy Sector (XLE) was the day's top performer.
Trade War Concerns Linger
Despite the stock market's rise, concerns over a potential trade war remain. Trump is expected to announce retaliatory tariffs this week against countries that impose duties on US goods. Investors will closely monitor developments in trade talks this week for indications of escalation.
Inflation and Interest Rates
The New York Fed's latest survey shows that consumers' long-term inflation expectations have ticked higher to 3%. The January Consumer Price Index (CPI) data, due on Wednesday, will be closely watched for signs of rising inflation. Concerns about inflation could potentially derail interest rate cuts.
Earnings and Corporate News
McDonald's (MCD) reported better-than-expected same-store sales growth, driving its shares higher. Other companies reporting earnings this week include Coca-Cola (KO), Super Micro Computer (SMCI), and Airbnb (ABNB).
Tesla Surges on Battery Tech News
Tesla (TSLA) stock jumped on Monday after the company announced plans to build a new battery cell facility, boosting investor confidence in its long-term growth prospects.
Rivian Opens Commercial Van Orders
Electric vehicle maker Rivian (RIVN) announced the opening of orders for its Rivian Commercial van, potentially creating a lucrative business segment for the company.
Gold Rises as Safe Haven
Gold prices surged past $2,900 per ounce on Monday as investors sought safe haven assets amid tariff threats. The precious metal has gained nearly 10% this year so far.