What Happened
The Dow Jones Industrial Average surged 400 points, or 0.9%, on Tuesday as investors reassessed President Donald Trump’s first-day trade policies, viewing them as less aggressive than initially feared. The S&P 500 gained 0.5%, while the Nasdaq Composite rose 0.2%, despite Apple’s sharp decline.
Why It’s Important
Markets had braced for sweeping tariffs as Trump returned to the White House, but instead, the president issued a broad memorandum directing federal agencies to study trade policies without immediately implementing new levies. Investors took this as a sign that major tariff hikes may not be an immediate priority, easing fears of inflationary pressure.
Market Movers
- 3M (MMM): Shares jumped more than 4% after the company reported better-than-expected earnings.
- Amazon (AMZN) & Alphabet (GOOGL): Both stocks climbed over 1% as the market rally extended into big tech.
- Apple (AAPL): The stock dropped more than 3% following two Wall Street downgrades, weighing on the Nasdaq.
- Russell 2000: The small-cap index gained over 1%, reflecting optimism in domestic economic growth.
By the Numbers
- Dow Jones Industrial Average: +400 points (+0.9%)
- S&P 500: +0.5%
- Nasdaq Composite: +0.2%
What’s Next
While Trump hinted at potential 25% tariffs on Mexico and Canada over border policies and left open the possibility of tariffs on China, he avoided immediate sweeping measures. Investors are now watching whether Trump follows through on pro-business initiatives, such as deregulation, which helped lift banking and energy stocks after his election victory in November.
