Stock market today: Dow, S&P 500, Nasdaq pare losses after Trump delays tariffs against Mexico
Published On Feb 3, 2025, 11:49 AM
US stocks fell in response to President Trump's announcement of new tariffs on imports from China, Mexico, and Canada, with the markets recovering slightly after Trump decided to delay tariffs on Mexico for one month. The Nasdaq Composite dropped around 1.3%, while the S&P 500 and Dow Jones experienced smaller declines. Companies like Nvidia and Apple were heavily impacted. Economists are debating the longevity of these tariffs, with many suggesting they may be a negotiation tactic rather than a permanent change. This has led to concerns about overall economic impact, particularly on consumer discretionary and tech stocks, but there is optimism that discussions could yield better trade agreements in the near future.
Stock Forecasts
NVDA
Negative
Given the current market reactions and the underlying uncertainty surrounding the tariffs, investing in tech stocks like Nvidia and Apple may carry risk in the short term. However, if negotiations regarding tariffs yield favorable outcomes, there could be recovery potential for these stocks. Thus, underlying market sentiment suggests a bearish outlook for these stocks in the short term.
XLY
Negative
Retail stocks, particularly those involved in consumer discretionary goods, are likely to face headwinds due to increased tariffs. However, companies with strong domestic supply chains might weather these impacts better. So, while the tariff news is detrimental, it also presents a buying opportunity for those focused on resilient companies in the sector.
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