Jamie Spencer
Wall Street bounced back on Monday after last week’s losses, with steel stocks surging as President Donald Trump announced new 25% tariffs on steel and aluminum imports.
Market Performance
- Dow Jones Industrial Average: +0.3%
- S&P 500: +0.7%
- Nasdaq Composite: +1%
The gains were led by a rally in tech stocks, particularly Nvidia (NVDA), which jumped over 1%.
Steelmakers Surge on Tariff Announcement
Trump’s latest trade move is expected to benefit U.S. steel producers. As a result, major steel stocks rallied:
- Cleveland-Cliffs (CLF): +14%
- Nucor (NUE): +7%
- U.S. Steel (X): +3%
- Aluminum producer Alcoa (AA): also gained
Meanwhile, concerns are rising about the impact on Canada and Mexico, two of the largest U.S. steel suppliers, as they already face potential tariff hikes.
Investors Brace for More Trade Moves
Markets are awaiting further reciprocal tariffs, which Trump said would be announced on Tuesday or Wednesday. The tariffs will apply to all trading partners and match the duties imposed on U.S. products by each country.
Despite these risks, some investors view the tariff moves as a negotiation tactic rather than an outright trade war, limiting market downside.
Inflation Concerns Loom
Traders remain wary that escalating tariffs could increase inflation, potentially delaying the Federal Reserve’s rate-cut plans. The January Consumer Price Index (CPI), due Wednesday, will be a key indicator.
Upcoming Earnings Reports
Markets are also watching corporate earnings, with 78 S&P 500 companies set to report this week. Key highlights include:
- McDonald’s (MCD): Shares rose after strong same-store sales growth
- Coca-Cola (KO): Earnings expected this week
- Super Micro Computer (SMCI): Set to report
- Airbnb (ABNB): Also on watch
Conclusion
Despite ongoing trade uncertainty, U.S. stocks showed resilience Monday. However, investors remain cautious, watching inflation data, trade policy updates, and earnings reports for further market direction.
