US Stocks Rise as Investors Weigh Trump's Orders, Trade Tariff Concerns
New York, January 20, 2023 – US stocks rallied on Tuesday as investors parsed President Donald Trump's first-day policy announcements, including the prospect of tariffs on Mexico and Canada.
The Dow Jones Industrial Average (^DJI) gained 0.6% to lead the rally, followed by the S&P 500 (^GSPC) with a 0.4% increase. The Nasdaq Composite (^IXIC) also climbed modestly, rising 0.1% as technology stocks such as Nvidia (NVDA) remained flat.
The market's initial enthusiasm was tempered after Trump indicated his intention to impose 25% tariffs on Mexico and Canada, effective February 1st. The news rattled investors, as they grappled with the potential impact on trade relations and the global economy.
Despite the tariff concerns, US stock futures had risen on Monday, and the dollar (DX-Y.NYB) had retreated from a two-year high. However, the mood shifted after Trump's tariff announcement, and Chinese stocks (000300.SS) closed with only slight gains.
Meanwhile, the 10-year Treasury yield (^TNX) fell around 4 basis points to approximately 4.57% on Tuesday, showing some recovery from a dip in Asian trading.
Bitcoin (BTC-USD) experienced volatility, reaching a record high above $109,000 on Monday before declining sharply on Tuesday. The cryptocurrency has since rebounded slightly, trading at over $103,000.
The upcoming quarterly earnings season will provide further insights for investors. Netflix (NFLX) is expected to report strong results, while Charles Schwab (SCHW) has exceeded expectations with a near 50% increase in earnings.
In other news:
* Tesla (TSLA) stock declined 4% in early trading Tuesday due to Trump's reversal of an electric vehicle mandate.
* Apple's iPhone sales in China reportedly dropped 18% during the holiday quarter.
* Huawei seeks to increase its market share in AI chips from Nvidia in China.