US Stocks Rise as Investors Look Past Tariff Threats
Market Overview:
US stocks climbed on Monday as investors shrugged off President Trump's latest tariff announcements, including new levies on steel and aluminum imports. The Dow Jones Industrial Average (^DJI) gained 0.32%, the S&P 500 (^GSPC) rose roughly 0.67%, and the Nasdaq Composite (^IXIC) jumped approximately 1.13%.
Key Drivers:
* Investors brushed aside Trump's announcement of additional 25% tariffs on steel and aluminum from all countries, with the official declaration expected on Monday.
* Steel companies benefited from the tariff news, as shares of Cleveland-Cliffs (CLF), Nucor (NUE), and US Steel (X) surged.
* Concerns about rising inflation due to the tariff hikes cooled, with the New York Fed survey indicating that consumers' long-term inflation expectations ticked higher to 3%.
* Earnings reports from 78 S&P 500 companies, including McDonald's (MCD) and Coca-Cola (KO), are expected this week.
Sector Performance:
* The S&P 500 Energy Sector (XLE) outperformed due to a rally in oil prices.
* Tech stocks gained ground, led by AI chip giant Nvidia (NVDA).
* Industrial stocks received a boost from the anticipated steel and aluminum tariffs.
Other Notable Developments:
* Nvidia's stock rose on bullish analyst calls, despite earlier sell-offs related to concerns over a Chinese AI model.
* Rivian (RIVN) opened orders for its commercial van beyond its initial partners.
* Energy stocks advanced as oil futures rallied.
* Economist Torsten Sløk warned of a "painful" stagflationary shock if a full-scale US trade war occurs.
* President Trump is expected to make trade announcements on three fronts this week.
* GameStop (GME) stock surged after CEO Ryan Cohen posted a picture with Michael Saylor, a major Bitcoin investor.
* Gold rallied above $2,900 per ounce as investors sought safe-haven assets amid tariff threats.