US Stocks Rise Amid Tariff Announcements
US stock futures are climbing on Monday morning, signaling a potential rebound after recent losses. The gains come as steel stocks surge after President Donald Trump announced plans to impose new tariffs on steel and aluminum imports.
Indices and Futures:
* Dow Jones Industrial Average futures (YM=F): +0.5%
* S&P 500 futures (ES=F): +0.4%
* Nasdaq 100 futures (NQ=F): +0.6%
Tariffs and Steel Stocks:
Investors are considering Trump's announcement on Sunday to impose additional 25% tariffs on steel and aluminum from all countries. The new tariffs are expected to benefit US steel companies, with stocks in Cleveland-Cliffs (CLF), Nucor (NUE), and US Steel (X) rising significantly in pre-market trading.
Trade Tensions and Inflation Concerns:
Trump's tariff plan represents an escalation in his trade policy and increases the probability of a trade war. The tariffs could impact major US suppliers such as Canada and Mexico, who have previously been threatened with similar measures. Markets are anticipating reciprocal tariffs, which Trump has indicated will be announced on Tuesday or Wednesday.
While the stock market is responding positively to the news, concerns remain about the potential impact on inflation and interest rates. The upcoming January consumer price index reading and updates on retail sales will be closely monitored for clues.
Earnings and Economic Data:
This week, 78 S&P 500 companies are scheduled to report earnings, including McDonald's (MCD), Coca-Cola (KO), and Airbnb (ABNB). In economic data, the New York Fed's one-year inflation expectations for January will be released.