Wall Street experienced a calm day on Tuesday, with tech stocks leading the way as the S&P 500 rose 0.7% following a strong profit report from Palantir Technologies. The Dow Jones Industrial Average added 134 points, and the Nasdaq composite climbed 1.4%.
President Donald Trump agreed to delay his taxes on Canadian and Mexican imports for a month, easing concerns about a trade war that could harm economies worldwide. This move bolstered hopes that Trump’s tough talk on tariffs may be merely a negotiating tactic.
However, some analysts warn that a trade war is still possible, citing Trump’s past threats and the potential for more market swings. The Bank of America strategists note that investors view the stock market as a real-time measure of the administration’s performance, suggesting caution.
Trump has pushed ahead with tariffs on Chinese imports, but these will not take effect until Monday. Instead, he may be more likely to impose long-term tariffs on China due to his desire to separate the US from its geopolitical rival.
The stock price of Alphabet, Google’s parent company, rose 2.5% despite a Chinese antitrust investigation. Earnings reports for US companies also had an impact, with Palantir Technologies’ strong profit report lifting the S&P 500. Other stocks, such as General Motors and Ford Motor, saw gains.
The US job market may be slowing down, according to a report indicating fewer job openings at the end of December. This led to easing Treasury yields, with the 10-year yield falling to 4.51%.
In international markets, Hong Kong’s Hang Seng rose 2.8%, and South Korea’s Kospi climbed 1.1%. The calm day on Wall Street follows a previous day of sharp swings due to concerns about tariffs on Mexico and Canada.
Source: https://apnews.com/article/stock-market-trump-delayed-tariffs-33abaed15baefd191890cf38afaae9a2