US Markets Mixed Amid Tariff Uncertainty and Inflation Concerns
US stocks traded in a mixed fashion on Tuesday as investors digested the latest tariff policy shifts from President Donald Trump and looked ahead to upcoming inflation data. Concerns over the impact of tariffs on global trade weighed on the broader market.
Stocks in Focus
* The Dow Jones Industrial Average (^DJI) edged higher by 0.2%, while the S&P 500 (^GSPC) hovered around flatline.
* The Nasdaq Composite (^IXIC) declined by 0.3%, pulled down by tech stocks. Tesla (TSLA) weighed heavily, falling over 5%. Shopify (SHOP) initially declined in pre-market trading but recovered.
Powell's Testimony
Federal Reserve Chair Jerome Powell began his two-day testimony in Congress, reiterating the central bank's stance of not rushing to adjust interest rates. Powell also emphasized the importance of Fed independence.
Earnings Reports
* Coca-Cola (KO) shares rose on strong earnings and revenue, beating estimates.
* Shopify's holiday sales exceeded expectations, but its forecast for the first quarter profit was downbeat.
Tariff Concerns
Traders are anticipating President Trump's announcement of a retaliatory tariff plan against countries that impose levies on US goods. The European Union has threatened countermeasures, raising concerns of a trade war.
Inflation Data Ahead
Investors are closely watching for the January Consumer Price Index, set to be released on Wednesday, and the wholesale counterpart on Thursday. Inflation remains a persistent concern.
Gold Surges
Gold prices initially fell but recovered after a 10% run since the start of the year. The recent tariff announcements have driven demand for the safe-haven asset, pushing it to an all-time high of over $2,960.