Headline: US Stocks Rally as Trump Begins Second Term with Ambitious Agenda
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US equities surged on Tuesday, propelled by the initial policy moves of President Donald Trump. While the Dow Jones Industrial Average (DJI) led the gains with a rise of over 1%, the S&P 500 (GSPC) and Nasdaq Composite (IXIC) also climbed.
The market's optimism was tempered by Trump's announcement that he is considering imposing tariffs on Mexico and Canada starting February 1st. This news caused slight declines in Chinese stocks, as investors remained skeptical about the potential for a US-China trade war.
Notable earnings reports contributed to the positive sentiment. 3M Company (MMM) outperformed expectations, sending its shares soaring by 5%. Charles Schwab (SCHW) also reported strong results, with earnings climbing by nearly 50%.
Other key developments included a $500 billion investment in AI infrastructure by a joint venture involving Oracle (ORCL), OpenAI, and SoftBank. Tesla (TSLA) and Apple (AAPL) stocks experienced declines amid concerns about electric vehicle mandates and weak iPhone sales, respectively.
The US dollar (DX-Y.NYB) initially retreated after Trump avoided broad-based tariffs but recovered some losses following his comments on potential duties against Mexico and Canada. Investors remain cautious as the administration signals its intention to evaluate US trade policy and potentially implement tariffs on various trading partners.
Overall, the market awaits the next batch of quarterly earnings with anticipation. Netflix (NFLX) is expected to deliver strong results later in the day, while D.R. Horton (DHI) and other homebuilders continue to grapple with weaker-than-expected home orders amid rising mortgage rates.