US Stocks Post Gains Following Trump's Inaugural Policy Moves

US equities closed higher on Tuesday, spurred by President Donald Trump's initial policy announcements.

Key Market Indicators

* Dow Jones Industrial Average ( ^DJI ): +1.24%
* S&P 500 ( ^GSPC ): +0.88%
* Nasdaq Composite ( ^IXIC ): +0.48%

Market Highlights

* The Dow led the rally with a surge of over 500 points, propelled by positive earnings from 3M Company.
* The S&P 500 gained nearly 0.9%, while the Nasdaq Composite climbed around 0.6% despite Tesla and Apple's midday setbacks.
* Nvidia shares advanced by over 2% after a rocky start to the session.

Trump's Executive Orders Drive Sentiment

* Trump's decision to hold off on imposing general tariff hikes initially boosted markets.
* However, sentiment shifted when he announced plans to levy 25% duties on Mexico and Canada starting February 1.
* Investors remain uncertain about potential trade tensions between the US and China.

Earnings Season Continues

* Netflix is expected to report strong results after a successful year marked by high-profile events.
* Charles Schwab reported a 50% surge in earnings, fueled by increased trading activity.
* D.R. Horton exceeded expectations despite a soft housing market.

Economic Indicators

* The 10-year Treasury yield ( ^TNX ) fell slightly to around 4.57%.
* The US dollar index experienced a sharp decline after Trump's inauguration but regained ground following his tariff announcements.

Analysts Weigh In

* Geetha Ranganathan of Bloomberg Intelligence expects Netflix to deliver strong results due to its solid content slate.
* Callie Cox of Ritholtz Wealth Management believes that Trump's policies are currently eclipsing earnings as a market driver.
* Bank of America Securities data shows that companies beating analysts' earnings and sales estimates have outperformed the S&P 500 by 3.34% in the following trading day.

Key Takeaways

* Investors are closely monitoring Trump's policy initiatives, which are expected to shape market sentiment in the coming weeks.
* The earnings season continues to provide insights into corporate performance and market dynamics.
* The volatility in the US dollar highlights the impact of geopolitical events on financial markets.