Stock market today: Dow, S&P 500, Nasdaq set to bounce back as Trump tariff move buoys steelmakers
Published On Feb 10, 2025, 7:51 AM
U.S. stock futures are up as the market anticipates a rebound following losses attributed to President Trump's announcement of new tariffs on steel and aluminum imports. The tariffs, set at 25%, are expected to benefit U.S. steelmakers, leading to pre-market gains for companies like Cleveland-Cliffs (CLF), Nucor (NUE), and U.S. Steel (X). Meanwhile, concerns over potential inflation stemming from these tariffs might affect the prospects for interest rate cuts. Investors are also watching the upcoming consumer price index update and earnings from various S&P 500 companies.
Stock Forecasts
CLF
Positive
The announcement of tariffs will likely lead to short-term positivity for U.S. steel and aluminum stocks due to reduced competition from imports. However, the broader market may face pressure if inflation risks emerge from these tariffs and hamper economic growth.
NUE
Positive
Given the expected gains from the new tariffs for U.S. steel makers, Nucor is likely to see a significant uptick in market sentiment and stock price in the near term as investors buy into the potential for increased profitability.
X
Negative
While the short-term outlook appears favorable for steel producers, U.S. Steel may face longer-term challenges if tariffs exacerbate inflation and affect demand. Therefore, its short-term gain may not sustain, leading to cautious trading.
AA
Positive
With aluminum prices likely to rise due to tariffs, Alcoa's stock is positioned to benefit from increased prices and demand, contributing to a positive outlook in the immediate future.
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