US Stocks Rise on Tech Boost Amid Trade War Jitters

Key Points:

* US stocks closed higher on Tuesday, led by technology companies, as investors grappled with China's retaliation to US tariffs.
* The Dow Jones Industrial Average gained 0.3%, while the S&P 500 rose 0.7%.
* The Nasdaq Composite jumped 1.4% to partially recover Monday's losses.

China's Retaliatory Tariffs:

* China swiftly responded to US President Donald Trump's 10% tariffs on Chinese imports, imposing 15% duties on US coal and liquified natural gas, and 10% on crude oil, farm equipment, and some autos.
* The tit-for-tat measures raise the risk of a trade war between the world's two largest economies.

Trade War Optimism:

* Despite the retaliatory actions, some on Wall Street view China's response as a show of restraint, potentially leaving room for compromise.
* President Trump plans to hold talks with Chinese President Xi Jinping, potentially within the next 24 hours.

Technology Sector Performance:

* Alphabet (GOOG, GOOGL) led the tech rally, jumping nearly 2.5%.
* Apple (AAPL), Amazon (AMZN), and Microsoft (MSFT) also posted gains.
* AI chip giant Nvidia (NVDA) rebounded after previous losses.

Other Notable Developments:

* AMD (AMD) rose after reporting strong guidance, easing concerns about an AI chip slowdown.
* Chipotle (CMG) fell after missing comparable sales estimates.
* Snap (SNAP) surged after beating expectations in earnings and revenue.

Jobs Data:

* Job openings declined more than expected in December, hitting 7.6 million, their lowest level since September.
* However, economists believe the labor market remains stable, with the hiring rate holding steady at 3.4%.

Sector Check:

* Tech stocks led the market higher, while consumer discretionary and healthcare sectors declined.

Additional Insights:

* Disney (DIS) is expected to report earnings on Wednesday, with investors eyeing updates on its streaming business and theme parks.
* Fox (FOXA) plans to launch its own streaming service, targeting cord-cutters and cord-nevers.
* Palantir (PLTR) soared after exceeding revenue expectations and benefiting from the AI boom.
* Oil prices pared losses despite China's retaliatory tariffs, with West Texas Intermediate trading around $72.80 per barrel.
* Spotify (SPOT) climbed after reporting its first full year of profit and strong subscriber growth.