President-elect Donald Trump participates in a signing ceremony in the Presidential Chamber following the 60th inaugural ceremony at the U.S. Capitol on January 20, 2025 in Washington, DC.
Melina Mara via reuters
Dow Jones Industrial Average There was progress Tuesday as Wall Street took President Trump’s comments and actions from the day regarding international trade as slightly softer than initially feared.
The 30-stock Dow added 244 points, or 0.6%. S&P 500 increased by 0.4%, while nasdaq composite Shimmering around the flat.
3M Rose more than 4% after earnings that beat analysts’ expectations. Tuesday’s rally also included small-cap names, which were driving it Russell 2000 About 1% more.
Many big technology stocks also rose Amazon And alphabet Each is making more than 1% profit. But more than 3% decline Apple Two Wall Street downgrades weighed on the tech-heavy Nasdaq.
Trump, signing executive orders on his first day at the White House on Monday night, said he was considering 25% tariffs on Mexico and Canada on Feb. 1 because of their border policies. He also mentioned China and said the US could impose tariffs on the country if it does not approve the TikTok deal.
Ultimately, Trump issued a sweeping memorandum directing federal agencies to study unfair trade policies with foreign countries. But the president stopped short of authorizing new tariffs on his first day in the Oval Office, which investors took as a sign that he may be less enthusiastic about issuing tariffs than previously expected.
“President Trump’s Inauguration Day policy announcements on tariffs were more benign than expected,” Alex Phillips, chief U.S. political economist at Goldman Sachs, said in a note to clients. “Right now, it’s a lower priority than we expected.”
Certainly, Phillips said Trump’s language around Canada and Mexico was actually more extreme than he expected. Still, the economist said he was downplaying the likelihood that the U.S. would impose a universal tariff on all imports this year, which could reassure traders who are fundamentally cautious that an expansive policy stance would stoke inflation again.
Trump said he was not yet ready for universal tariffs and was vague when discussing the levy on China.
Outside of trade policy, Wall Street’s attention will focus on pro-business announcements made by Trump throughout his campaign, particularly as his call for looser regulations helped lift banking stocks following his election victory in November. Helped. Other components of the so-called Trump trade – including small caps, oil stocks and Bitcoin – will likely be more susceptible to his administration.
In his inaugural address, the president described his return to the White House as the beginning of a period of growth and success for the country, while largely condemning the Biden administration. Trump also declared a national energy emergency on Monday to increase fossil fuel production.
