Stock market today: Dow, S&P 500, Nasdaq rise with investors on Trump tariff watch
Published On Jan 21, 2025, 9:39 AM
U.S. stocks saw gains on the first trading day of President Trump's second term, primarily driven by anticipation of new tariffs on Mexico and Canada. The Dow Jones and S&P 500 increased by approximately 0.5% and 0.4%, respectively, influenced by strong performances from tech giants like Nvidia. The mood has fluctuated as investors digest Trump's policy changes, particularly his trade measures, which might lead to increased market volatility. Notably, investors observed a slight pullback in the dollar, following a strong start, with optimism stemming from companies like Charles Schwab and Netflix poised to report strong earnings soon.
Stock Forecasts
SPY
Negative
The announcement of potential tariffs could create uncertainty for companies with significant trade exposure, thus leading to volatility in the market. Investors may want to be cautious with sectors heavily reliant on international trade.
NVDA
Positive
Tech stocks like Nvidia are continuing to drive market gains and appear well-positioned for growth due to continued demand. Investors may find opportunities in robust market reactions to tech earnings.
XLP
Neutral
Given the mixed signals from tariff announcements, sectors such as utilities and consumer staples could be looked upon as safer bets for stability amid the growing volatility, especially if escalated tariffs are enacted.
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