Stock market today: Dow, S&P 500 fall and Nasdaq give up gains as Trump moves ahead on tariffs
Published On Jan 31, 2025, 3:30 PM
US stocks declined after the White House confirmed the implementation of tariffs on goods from Mexico, Canada, and China, with fears of a trade war resurfacing. The S&P 500 dropped 0.2% and the Dow Jones fell 0.5% amidst this uncertainty, despite positive earnings reports from tech companies like Apple earlier in the day. The tariffs could negatively impact both market sentiment and the economy, as traders remain cautious ahead of further economic indicators and the Federal Reserve's interest rate decisions. Despite positive responses to earnings reports, the looming tariffs may result in increased volatility in the market.
Stock Forecasts
SPY
Negative
With the confirmed tariffs scheduled to be enacted, particularly the 25% on Mexico and Canada, there may be negative repercussions for companies heavily relying on goods from these countries. Conclusively, this could trigger a bearish sentiment in the market, especially among trade-exposed sectors.
GLD
Positive
Gold is often viewed as a safe haven during periods of uncertainty such as this. Analysts from Goldman Sachs have reiterated their bullish stance on gold, making it a potential beneficial investment as tariffs may elevate its demand as a hedge.
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