Wall Street started Donald Trump’s second term with a slight uptick on Tuesday, as the S&P 500 rose 0.6% in early trading following positive earnings reports from major companies. The Dow Jones Industrial Average gained 188 points (0.4%), and the Nasdaq composite climbed 0.5%.
Market Highlights
- U.S. Stock Performance:
- The S&P 500 and Nasdaq posted early gains, supported by strong corporate earnings.
- The Dow showed similar growth, driven by optimism from Trump’s economic policies.
- Corporate Movers:
- 3M (+3.6%): Reported better-than-expected earnings and steady revenue projections for 2025.
- Charles Schwab (+6%): Surged after reporting a 19% increase in client assets, now totaling $10.10 trillion.
- Walgreens (-7.9%): Dropped after a U.S. Justice Department lawsuit accusing it of improperly filling opioid prescriptions.
Wall Street Kicks Off Trump’s Second Term with Modest Gains
Trump’s Economic Agenda and Global Reactions
- Tariff Announcements:
- Trump reaffirmed plans to impose 25% tariffs on Canada and Mexico starting February 1, leading to declines in both the Mexican peso (-1%) and Canadian dollar (-0.6%).
- He signaled a softer stance toward China, opting for more dialogue before imposing trade penalties.
- Treasury Yields:
- The 10-year Treasury yield fell to 4.57%, retreating from Friday’s 4.62%.
- Bond markets eased after months of pressure from inflation concerns.
- International Markets:
- Europe: Stock indexes rose slightly across the region.
- Asia: Hong Kong’s Hang Seng Index (+0.9%) gained after Chinese property developer Country Garden extended its deadline for creditor negotiations.
Sector Spotlight
- Industrials and Finance Lead:
- Healthcare Struggles:
- Walgreens faced pressure amid legal challenges, adding to ongoing scrutiny of pharmacy chains.
Looking Ahead
Wall Street remains attentive to Trump’s trade policies and their potential impact on global markets. While corporate earnings are offering some short-term support, the tariff threats and geopolitical uncertainties could shape longer-term investor sentiment.
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