Stocks rise on Trump’s tariff.
Stocks started to show positive sentiment on Tuesday when markets processed President Trump’s first-day executive orders, which showed less extreme trade measures.
The Dow gained 170 points in daily trading for a 0.39% market rise. The S&P 500 index increased by 0.49%, while the technology-focused Nasdaq rose 0.52% in trading today.
Keep reading
During his Oval Office announcement, President Trump explained his administration’s plans to start a 25% tariff on imports from Mexico and Canada on February 1. He kept silent about placing a tariff on China, which holds the position of being the United States’ biggest trade partner.
At an Oval Office signing ceremony Monday, Trump told reporters that his original China tariff policies from his first presidency stayed active under President Biden’s administration.
Trump warned that the US would establish China tariffs unless Beijing approved TikTok’s future operation within US borders.
The dollar showed little change on Tuesday after maintaining its rally through recent months following Trump’s potential return to office.
Early Tuesday, WTI crude oil prices dropped 2.5% when Trump issued executive orders about oil drilling regulations that would allow US companies to drill more.
Stock markets looked more favorable when Treasury note yields decreased
In their Tuesday report, Morgan Stanley analysts advised investors to stay cautious, given Trump’s upcoming February tariff action.
According to CFRA Research’s Sam Stovall, the S&P 500 showed a 4% rise from when Trump won the election to his inauguration. According to his research, this rally was the 11th out of all presidential “honeymoon” periods since 1944. Stovall data shows that market success in this period predicts positive returns for the presidential term and year almost eight out of ten times.
Investors are curious to determine if Trump-era investment success will continue.
Bitcoin peaked at $109,00 on Monday before declining by 3% in the afternoon. Trump and First Lady Melania Trump introduced meme coins over the weekend despite skipping cryptocurrency mentions in his speech.
