US stocks rose Tuesday as companies beat earnings expectations, while Treasury yields eased, offsetting concerns about potential tariffs and economic policy changes under President Trump’s second term. The S&P 500 climbed 0.9%, the Dow Jones Industrial Average rose 1.2%, and the Nasdaq composite added 0.6%.
Major companies including Charles Schwab, 3M, Moderna, and Oracle surged on better-than-expected earnings reports. In contrast, Walgreens dropped 9.2% amid a US Justice Department lawsuit accusing the pharmacy chain of improper opioid prescriptions.
President Trump’s plans to reshape global trade and the economy have sparked market uncertainty, with many Asian and European markets showing only modest gains. The Mexican peso and Canadian dollar fell against the US dollar after Trump announced 25% tariffs on Canada starting February 1. However, Treasury yields eased to give back recent gains, driven by concerns about inflation.
Investors await announcements from Trump’s administration on investments in artificial-intelligence infrastructure involving tech giants OpenAI and SoftBank. Morgan Stanley strategist Michael Wilson expects a pattern of stocks dropping when yields rise and vice-versa until the 10-year Treasury yield falls below 4.50% on a sustainable basis.
Source: https://apnews.com/article/stock-markets-inauguration-trump-rates-tariffs-49a475766833bb0af8aaef5e194d389b