Stocks rose Tuesday as President Donald Trump's first-day actions regarding international trade were not issued on day one. The Dow Jones Industrial Average climbed over 500 points, while the S&P 500 Index and Nasdaq Composite advanced 0.9% and 0.6%, respectively.
On Monday, Trump said that he is considering issuing tariffs against Mexico and Canada as soon as February, reportedly weighing a 25% tariff on both trade partners due to border security concerns. The Trump administration is also planning to impose 10% tariffs on all countries.
"President Trump's Inauguration Day policy announcements on tariffs were more benign than expected," said Alex Phillips, chief U.S. political economist at Goldman Sachs, in a note to clients. "For now, it is a lower priority than we would have expected." Still, Phillips noted that Trump's remarks about Canada and Mexico were more hawkish that he anticipated.
Here's how the market settled on Tuesday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
Trump Administration:
The Trump Administration's Securities and Exchange Commission (SEC) announced Tuesday it will launch a "crypto task force" to create regulations for the industry.
The SEC said in a press release:
"Drawing from talented staff across the agency, the Task Force will collaborate with Commission staff and the public to set the SEC on a sensible regulatory path that respects the bounds of the law. To date, the SEC has relied primarily on enforcement actions to regulate crypto retroactively and reactively, often adopting novel and untested legal interpretations along the way. Clarity regarding who must register, and practical solutions for those seeking to register, have been elusive. The result has been confusion about what is legal, which creates an environment hostile to innovation and conducive to fraud. The SEC can do better."
Separately, Bank of America
"If the rules come in and make it a real thing that you can actually do business with, you'll find that the banking system will come in hard on the transactional side of it," Moynihan said in an interview at the World Economic Forum in Davos, Switzerland.
"If you go down the street here and you go in and buy lunch, right, if you can pay with Visa
In the News:
The U.S. Food and Drug Administration (FDA) on Tuesday approved Johnson & Johnson's
Apple was downgraded by Loop Capital and Jefferies analysts on Tuesday, with each firm highlighting concerns over waning iPhone sales and overall consumer demand.
Loop Capital analyst Ananda Baruah downgraded shares of the tech giant to Hold from Buy and revised the firm's price target to $230 from its previous $275. ""We're downgrading to Hold on the heels of work from Loop Capital Supply, Chain Analyst John Donovan that suggest a material iPhone demand reduction beginning in the Mar Quarter but materially amplifying in the June and Sept.," Baruah wrote in a note to clients.
Jefferies analyst Edison Lee also downgraded Apple from Hold to Underperform late Monday and issued a price target of $200.75, citing weak iPhone demand, particularly from China. "We lower forecasts driven by weak iPhone sales and the general [consumer electronics] market and our reduced outlook for iPhone 17/18 due to slower AI uptake and commercialization," Lee wrote, adding that the firm expects Apple to miss its first-quarter 2025 revenue guidance of 5% growth.
Costco
"Costco's greedy executives have less than two weeks to do the right thing," said Sean O'Brien, general president of Teamsters, in a statement. "If they refuse, they'll have no one to blame but themselves when our members go on strike."
On the Earnings Front:
3M
Charles Schwab
"We are attracting younger investors, with 33% of our new-to-firm retail households under the age of 30, and more than 50% under the age of 40," CEO Rick Wurster told analysts during the company's earnings call on Tuesday, adding that he expects more regulatory clarity this year to potentially begin offering crypto spot trading to better diversity its customer base.
For Wednesday:
Market participants will react to earnings reports from companies including Netflix
This article will has finished updating.