Stock Market Drifts as Wall Street Eyes Tariff Deadline/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks climbed Monday as investors awaited President Donald Trump’s decision on tariffs set to take effect Tuesday. The S&P 500 rose 0.4%, the Dow gained 138 points, and the Nasdaq was up 0.6%. Markets have fluctuated in recent weeks amid strong earnings reports and concerns over economic uncertainty. Traders hope Trump will delay or adjust the tariffs, which could impact trade with Canada, Mexico, and China. Meanwhile, European and Asian markets also rallied, and bond yields remained steady as investors assessed inflation data and economic growth prospects.
Stock Market Overview: Quick Look
- U.S. Markets: S&P 500 (+0.4%), Dow (+138 pts), Nasdaq (+0.6%).
- Tariff Deadline: Trump’s new tariffs on Canada, Mexico, and China set for Tuesday.
- Investor Sentiment: Markets hope for a delay or renegotiation.
- Earnings Reports: Retail giants like Best Buy and Ross Stores to report this week.
- Global Markets: European and Asian stocks rise on easing inflation.
- Bond Yields: 10-year Treasury yield steady at 4.24%.
Stock Market Drifts as Wall Street Eyes Tariff Deadline
Stock Market and Tariff Deadline: Deep Look
Wall Street Rises Amid Uncertainty
U.S. stocks rebounded on Monday as investors braced for President Donald Trump’s looming tariff deadline. The S&P 500 gained 0.4%, the Dow Jones Industrial Average added 138 points (0.3%), and the Nasdaq Composite climbed 0.6% in early trading.
After weeks of market turbulence, traders are closely watching whether Trump will follow through with his tariffs on Canadian, Mexican, and Chinese imports. While previous tariff announcements have rattled Wall Street, investors hope that Trump may delay or revise his plan at the last minute, as he did a month ago.
Stocks have been on a rollercoaster ride, hitting record highs before falling sharply on economic uncertainty. A series of strong earnings reports from major U.S. companies initially fueled optimism, but weaker-than-expected economic data and concerns over inflation have tempered enthusiasm.
Tech Stocks Show Mixed Performance
Technology stocks were among the biggest movers, with Nvidia falling 2.1% while Tesla rebounded with a 2.8% gain. Nvidia had led a strong rally on Friday, but investors took some profits after its recent surge.
Elsewhere, grocery giant Kroger dropped 1.3% after CEO Rodney McMullen resigned following an internal investigation into his personal conduct. The news added to uncertainty in the retail sector, with earnings reports from Best Buy, Ross Stores, and AutoZone expected this week.
Consumers and Corporations React to Tariffs
Trump’s latest tariffs could significantly impact trade, particularly with China, where manufacturers saw an increase in orders last month as companies rushed to avoid higher costs. The upcoming 10% tariff on Chinese imports is set to rise to 20% on Tuesday, alongside the elimination of the “de minimis” rule, which previously allowed imports under $800 to enter the U.S. tariff-free.
In response, Chinese state media reported that Beijing is considering countermeasures, potentially escalating the trade dispute further.
Global Markets Rally on Inflation Data
While U.S. investors remain cautious, stock markets across Europe and Asia rallied Monday. Germany’s DAX surged 3.1%, and France’s CAC 40 jumped 1.7% to reach a new record, fueled by signs of easing inflation. Investors widely expect the European Central Bank to cut interest rates later this week, further boosting sentiment.
In Asia, Hong Kong’s Hang Seng Index rose 0.3%, while Chinese bubble tea chain Mixue Bingcheng soared 43% in its market debut, signaling strong consumer demand in China.
Bond Market and Economic Outlook
The bond market remained relatively stable, with the 10-year Treasury yield hovering at 4.24%. Yields have dropped sharply since January, when they neared 4.80%, reflecting concerns about a potential economic slowdown.
As investors await Trump’s next move on tariffs, market sentiment remains cautious. While stocks have shown resilience, further trade disruptions could lead to increased volatility in the days ahead.
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