Stocks Soar as Trump Takes Office, Tariff Fears Ease
The US stock market surged on Tuesday, with the Dow Jones Industrial Average breaking above 44,000 and the S&P 500 topping 6,000, as investors digested President Donald Trump’s first policy moves. The Dow led the charge, rising over 500 points, or 1.2%, driven by solid earnings from 3M Company. The S&P 500 and Nasdaq Composite also posted gains, up 0.9% and 0.6%, respectively.
Earnings Season Heats Up
The next batch of quarterly earnings will provide more insight for investors. Netflix is expected to deliver strong results when it reports after the bell, following a successful quarter with 18.9 million new users. The company also announced a $15 billion stock buyback and boosted its full-year revenue outlook.
Trump’s Policy Moves in Focus
Markets are bracing for volatility as Trump pushes ahead with executive orders and actions, with energy and trade taking center stage. The president hinted at imposing 25% duties on Mexico and Canada starting February 1, but held off on broad-based tariff hikes. Oil prices dropped on the prospects of a tariff war impacting growth and consumption.
Bitcoin and Crypto in the Spotlight
A bitcoin strategic reserve under President Trump is a real possibility, according to Coinbase CEO Brian Armstrong. The crypto industry is advocating for clearer regulations to boost the industry over the long term. Bitcoin hovered above $106,000 on Tuesday afternoon.
Tech Stocks Mixed
Shares of Tesla and Apple declined, weighed by Wall Street downgrades over concerns of weak iPhone sales. Meanwhile, Nvidia inched up more than 2% after a volatile start to the session. Oracle stock jumped as much as 6% after a report said the company is set to be part of a $500 billion investment in AI infrastructure.
Dollar Volatility Continues
The US dollar index saw its worst one-day drop in a year, falling more than 1% after Trump didn’t take tariff action on his first day in office. The dollar’s gains and losses signal a new normal for markets, according to Mohamed El-Erian, chief economic adviser at Allianz.
Housing Market Update
DR Horton stock wavered Tuesday morning after the builder reported weaker-than-expected home orders for its fiscal first quarter. However, the company affirmed its full-year guidance and delivery projections. Builders like DHI have been facing higher mortgage rates, leading to increased incentive levels.
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