US Stocks Rise as Investors Weigh Trade War Risks
NEW YORK, Feb. 18, 2023 - US stocks gained ground on Tuesday amid concerns over a potential trade war between the US and China.
Key Points:
* US stocks moved higher as investors assessed China's swift retaliation to President Donald Trump's additional tariffs.
* The Dow Jones Industrial Average rose 0.2%, while the S&P 500 climbed 0.7%. The Nasdaq Composite jumped 1.2%.
* Beijing imposed tariffs on US coal and natural gas, as well as duties on crude oil, farm equipment, and vehicles.
* Traders also weighed fresh jobs data, which showed job openings declining more than expected in December.
Market Highlights:
* Alphabet (GOOGL) shares rose 2% ahead of its earnings release, as investors anticipate insights into the company's AI investments.
* Palantir (PLTR) surged 25% after exceeding quarterly expectations, driven by strong demand for its artificial intelligence products.
* Spotify (SPOT) climbed 9% after reporting its first full-year profit, benefiting from subscriber gains and reduced churn.
* Google (GOOG) is facing an antitrust probe in China, which sent its shares slightly higher.
* The US dollar index fell as concerns about a trade war eased somewhat.
Analyst Commentary:
"Some on Wall Street see the Chinese response as showing restraint, opening the door to compromise," said a trader at a major investment bank.
"Investors are continuing to watch any signs of cooling in the labor market as the Federal Reserve debates future interest rate cuts," added an economist at a leading research firm.
Outlook:
Investors will continue to closely monitor developments in the US-China trade dispute. The release of Alphabet's fourth-quarter results and the upcoming Federal Reserve meeting will also be key market drivers.