Stock Market Live Updates: Dow, S&P 500, Nasdaq Gain as President Trump Targets Tariffs
US stocks rise as Dow, S&P 500, and Nasdaq react to President Trump’s tariff plans on Mexico and Canada. Stay updated with the latest market trends.
The Dow Jones Industrial Average (^DJI) increased by 0.5%, while the S&P 500 (^GSPC) advanced 0.4%. The Nasdaq Composite (^IXIC) also rose 0.5%, driven by strong performances from tech giants like Nvidia (NVDA). Markets prepared for potential turbulence as Trump's second term officially began, with energy and trade policies taking center stage. US stock exchanges were closed on Monday in observance of Martin Luther King Jr. Day.
Investors found temporary relief as Trump refrained from implementing sweeping tariff hikes on his first day in office. Contrary to expectations, China avoided the anticipated high duties on its exports. This news helped US stock futures climb and eased the dollar (DX-Y.NYB) from a near two-year high. However, market optimism waned after Trump later signaled plans to impose 25% tariffs on Mexico and Canada starting February 1. Chinese equities (000300.SS) ended Tuesday with modest gains, reflecting skepticism about a potential de-escalation in the US-China trade relationship.
On the bond front, the 10-year Treasury yield (^TNX) dropped by about 5 basis points to 4.56% early Tuesday, recovering slightly from steeper losses during Asian trading hours.
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In the cryptocurrency market, Bitcoin (BTC-USD) experienced dramatic fluctuations. The digital asset soared above $109,000 on Monday during Trump's swearing-in, buoyed by the announcement of an official TRUMP-themed token. However, Bitcoin faced a sharp decline early Tuesday as the anticipated pro-crypto policies failed to materialize. It later rebounded slightly, trading above $104,000.
Corporate earnings are also in focus, with Netflix (NFLX) set to report after-market results that analysts expect to be strong. Charles Schwab (SCHW) reported a nearly 50% jump in profits, boosted by increased trading activity. D.R. Horton (DHI) surpassed forecasts despite challenges in the housing sector, while 3M Company (MMM) issued positive full-year guidance, citing strong organic sales growth.
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21 Jan 2025 11:50 AM
D.R. Horton Stock Wavers After Mixed Earnings ReportD.R. Horton (DHI) stock fluctuated Tuesday morning after the company reported weaker-than-expected home orders for its fiscal first quarter, despite beating earnings expectations. The Texas-based homebuilder posted earnings per share of $2.61, surpassing the expected $2.38. However, net sales orders fell to 17,837, missing the consensus estimate of 18,478 and marking a 1.3% year-over-year decline.
The company continues to face challenges from rising mortgage rates. Freddie Mac reported the average 30-year fixed interest rate climbed to 7.04% last week, driven by strong employment data. Higher rates have prompted DHI and other builders to increase buyer incentives, a trend that could pressure gross margins in the second quarter, according to CEO Paul Romanowski.
Despite these challenges, DHI maintained its full-year guidance and projected revenue of $36 billion to $37.5 billion, slightly above analyst expectations of $37.12 billion. The company’s competitive stance in the housing market remains a key focus moving forward.
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21 Jan 2025 11:48 AM
Dollar Falls After Trump Holds Off on Immediate Tariffs
The US dollar retreated from near two-year highs on Tuesday as President Trump opted not to impose immediate broad-based tariffs on his first day in office. Investors were caught off guard by the decision, which would have been possible through an emergency order for faster implementation. Instead, Trump hinted at potential tariffs on Mexico and Canada by February 1 and directed agencies to evaluate trade policies for future actions.
Despite the initial drop, the dollar recovered about half its losses following these statements. Analysts have noted this volatility could persist, with Trump’s trade policies introducing both risks and opportunities for the market.
The US Dollar Index, which measures the dollar’s strength against six major global currencies, has gained nearly 10% since September and 5% since Trump’s election, driven by market recalibrations and strong economic data. Experts predict further fluctuations as trade policies evolve under the new administration.
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21 Jan 2025 11:03 AM
Tesla Stock Drops as Trump Ends EV Mandate
Tesla (TSLA) shares fell over 4% in early trading on Tuesday after President Trump eliminated a key electric vehicle (EV) mandate established by the previous administration.
Policy Reversal:
On his first day in office, Trump revoked 78 executive orders signed by former President Joe Biden, including a mandate requiring 50% of new cars produced in the US to be electric by 2030.
Market Reaction:
Tesla stock dropped 4%. Lucid (LCID) declined nearly 7%. Rivian (RIVN) slid 5%. Traditional automakers saw gains: General Motors (GM) stock rose. Ford (F) also traded higher. Investors are now reassessing the outlook for EV makers under Trump’s administration.
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21 Jan 2025 11:00 AM
Stocks Start Higher as Trump’s Policies Take the Spotlight
The stock market is off to a strong start this morning as investors respond to President Trump’s first executive actions during his second term.
- The Dow Jones is up by 0.5%.
- The S&P 500 has gained 0.4%.
- The Nasdaq is also up 0.5%, led by tech giants like Nvidia.
Traders are keeping an eye on Trump’s trade policies, especially the potential tariffs on China and Mexico, which could impact the market in the coming weeks.
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21 Jan 2025 10:56 AM
Key Updates on Economic Data and Earnings
Here's What’s Happening Today:
Economic Data: No major economic data releases are scheduled for today.
Earnings Reports to Watch:
- Netflix (NFLX): Anticipated to report after market close, with analysts expecting strong performance.
- 3M Company (MMM): Expected to provide insights into full-year guidance.
- Capital One (COF): Key focus on financial sector trends.
- Charles Schwab (SCHW): Recent gains in trading activity could reflect positively in the report.
- D.R. Horton (DHI): Set to reveal performance amid a soft housing market.
- KeyCorp (KEY) and Interactive Brokers Group (IBKR): Financial institutions to watch for sector health.
- United Airlines (UAL): Likely to provide updates on travel demand trends.
- Zions Bancorporation (ZION): Regional banking performance under the spotlight.
Stay tuned for live updates throughout the day as markets react to these developments.
