US Stocks Rebound as Investors Look Past Trump's Tariff Threats
Major U.S. stock indices rallied on Monday, defying President Trump's latest tariff announcements.
* The Dow Jones Industrial Average (^DJI) gained nearly 0.4%, recovering from its worst loss in nearly four weeks.
* The S&P 500 (^GSPC) rose approximately 0.6%, while the Nasdaq Composite (^IXIC) jumped nearly 1%, propelled by tech stocks.
Tariff Impact on Specific Sectors
* Steel-related stocks surged after Trump's announcement of 25% tariffs on steel and aluminum imports. Cleveland-Cliffs (CLF), Nucor (NUE), and U.S. Steel (X) all gained significantly. Aluminum producer Alcoa (AA) also benefited.
* Energy stocks performed well, with oil prices rebounding from a three-week decline.
Inflation Concerns and Consumer Sentiment
* The New York Fed's latest survey revealed that consumers expect long-term inflation to remain at 3%.
* The University of Michigan consumer sentiment survey showed a decline in confidence due to inflation fears.
Corporate Earnings
* 78 S&P 500 companies are scheduled to report earnings this week.
* McDonald's (MCD) shares rose after its same-store sales surpassed expectations. Coca-Cola (KO), Super Micro Computer (SMCI), and Airbnb (ABNB) are among the other companies scheduled to report.
Market Analysis
* Investors are gradually adapting to the possibility of a trade war, suggesting that Trump's tariffs may be seen as a negotiation tactic rather than a significant threat.
* However, concerns remain over the potential for higher inflation and an impact on interest rates.