Stock market today: Dow, S&P 500, Nasdaq stumble as Trump recommits to sweeping tariffs on Saturday
Published On Jan 31, 2025, 4:06 PM
US stocks fell on Friday after the announcement of new tariffs by the White House on Mexico, Canada, and China, raising concerns about a potential trade war. The tariffs will be 25% on Mexico and Canada, and 10% on China. Despite strong earnings from Apple boosting market sentiment earlier in the day, the tariff news overshadowed these advancements, leading to losses across major stock indices. Specifically, the S&P 500 dropped 0.5%, the Dow Jones Industrial Average fell 0.8%, and the tech-heavy Nasdaq Composite decreased by 0.3%. The uncertainty surrounding the tariffs raised inflation concerns, impacting the Federal Reserve's outlook and leading to speculation that interest rate cuts may not happen until June.
Stock Forecasts
XLI
Negative
The tariff announcements are likely to have negative implications for companies heavily reliant on international trade, especially in the tech sector. Given the increase in geopolitical risks and trade tensions, investor sentiment may turn bearish, especially against shares of affected companies.
UUP
Positive
The announcement could benefit the US dollar as traders view tariffs as a dollar-positive action, despite volatility in the markets. A strong dollar can impact export competitiveness negatively, but currency traders may seek to invest in dollars as safe havens during unstable times.
GLD
Positive
Gold appears as a favorable investment as tariffs might contribute to inflationary pressures, prompting investors to see gold as a traditional safe-haven asset. Goldman Sachs has reiterated a bullish outlook on gold, predicting continued demand amidst uncertainty.
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