Market Optimism Returns as Trump’s First-Day Orders Bring Relief
As the dust settles on President Donald Trump’s first day in office, US stock futures are on the rise, with investors breathing a sigh of relief that the anticipated barrage of universal tariff hikes didn’t materialize. The Dow Jones Industrial Average and S&P 500 futures both climbed roughly 0.4%, while Nasdaq 100 contracts surged about 0.5%, driven by gains in tech giants like Nvidia.
A Reprieve for China, but Mexico and Canada in the Crosshairs
Markets were closed on Monday for the Martin Luther King Jr. holiday, but Tuesday brought a sense of calm as Trump held off on imposing high duties on Chinese imports. The dollar, which had reached a near two-year high, pulled back, and US stock futures rose. However, the mood shifted later in the day when Trump announced plans to impose 25% duties on Mexico and Canada from February 1.
Global Markets React
Chinese stocks closed with only slight gains, indicating that investors remain cautious about a potential US-China trade war. Meanwhile, the 10-year Treasury yield fell nearly 4 basis points to around 4.59%, recovering from a deeper drop in Asia trading.
Bitcoin’s Wild Ride
The digital currency experienced a rollercoaster ride, surging to a record high above $109,000 on Monday as Trump was sworn in. However, it plummeted early Tuesday after a hoped-for pro-crypto push failed to materialize in the first policy actions. Bitcoin has since recovered somewhat, trading slightly higher at $103,804.
Earnings Season Heats Up
The next batch of quarterly earnings will provide further insight for investors. Netflix is expected to deliver strong results, while Charles Schwab and D.R. Horton are also on the crowded docket. As the market continues to digest Trump’s policy agenda, investors will be watching closely for signs of volatility and opportunity.
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