US Stocks Surge on Trump's First Trading Day, Tech Lags
By: Various Authors
Published: January 21, 2023
Summary:
US stocks opened strongly on Tuesday, with the Dow Jones Industrial Average and S&P 500 gaining approximately 0.6% and 0.4%, respectively. However, the Nasdaq Composite remained flat as tech giants like Tesla and Nvidia faltered. Investors were digesting President Donald Trump's initial policy announcements, which included potential tariffs on Mexico and Canada.
Market Overview:
* Dow Jones Industrial Average (^DJI): +0.62%
* S&P 500 (^GSPC): +0.99%
* Nasdaq Composite (^IXIC): +0.28%
Key Developments:
* President Trump hinted at imposing 25% tariffs on Mexico and Canada starting February 1.
* China's stock market saw modest gains, indicating skepticism about a US-China trade resolution.
* The 10-year Treasury yield fell slightly, recovering from a drop in Asia trading.
Earnings News:
* Netflix (NFLX) is expected to report strong results after the bell.
* Charles Schwab (SCHW) reported a nearly 50% surge in earnings, driven by increased trading activity.
* D.R. Horton (DHI) also beat expectations despite a subdued housing market, while 3M Company (MMM) issued optimistic guidance for the year.
Forex and Cryptocurrency:
* The US dollar retreated from recent highs after Trump avoided implementing broad-based tariffs on his first day.
* Bitcoin (BTC-USD) initially rose but later fell after it failed to receive a pro-crypto boost from Trump's initial policies.
Other Notable Developments:
* Tesla (TSLA) declined over 4% after Trump revoked an electric vehicle mandate implemented by the Biden administration.
* Huawei reportedly aims to capture market share in AI chips from Nvidia in China.