A look at the coming day in US and World Markets of Mike Dolan
Old and new economy stocks keep Wall Street being pumped up this week as technology and steel sectors move on on a mix of tariff news and artificial intelligence, with treasures in three to the headteacher's latest trip on the Fund Federal Jerome Powell to Congress.
US President Donald Trump raised tariffs on steel and aluminum imports on Monday to a 25% flat “without exceptions or exceptions,” in a movement he hopes that helps companies struggling the US in the a sector but risks triggering a multi-front trade war.
Steel imports account for 23% of American steel consumption in 2023, according to American iron and steel organization data, with Canada, Brazil and Mexico the largest suppliers.
Trump also said that, within two days, he would follow an action on Monday with bilateral tariffs on all countries that impose duties on US goods, looking at tariffs on cars, semi -conductors and pharmaceuticals.
And in another, he said he had spoken to Chinese President Xi Jinping since he took up his post on January 20 – without offering details of the topics of their talk.
The result of the tariffs was a lift for US steelmakers on Monday, with shares in foreign competitors getting another peripheral blow on Tuesday. Thyssenkrupp and Salzgitter were in Germany, for example, down 1% each earlier.
The lift to US metals companies – with people like Nucor, US steel and steel dynamics won 4% on Monday and Alcoa up 2% – helped the S&P500 benchmark to restore early losses on Monday and finish in higher.
Currency markets appeared to be brushing the steel tariffs aside, with the dollar just a little higher. Gold climbed to another high record, however, with Spot Gold hitting $ 2,942.70 per ounce short before retreating.
The future of stock gave some of those index earnings back on Tuesday, partly due to increasing long-term Treasury products as Powell prepared its semi-annual congressional evidence and before the sales of the week's large debt.
Excitement
But stocks were built by a new leg higher in technology on Monday as well. AI Nvidia and Broadcom chip makers raised nearly 3%.
Some of the latest excitement came from news that a consortium led by Elon Musk is offering $ 97.4 billion to buy the di -le that controls Openai – a turn in the billionaire battle to block the starting transfer of the AI for a profit. The Giant Auto Musk Tesla lost 3% on the report.
Wider optimism in US stocks comes from the latest corporate earnings season payments – now more than halfway through.
With more than 60% of S&P500 companies have identified fourth -quarter updates, the annual aggregate profit growth for the index is tracking close to 15% – significantly higher than the 10% expected on January 1. At almost to 5%, annual revenue growth is also higher than Pencil in at the beginning of the year.
Those kinds of profit earnings, stillced economic growth, tight labor markets and increased import tariffs all give the Fed enough cause to delay its credit relieving campaign.
Powell is likely to note that in his evidence later in the day – with markets now being fully priced for one rate cut this year and not before September.
Although Friday's news of an unexpectedly large injection in the US pay growth last month was one reason for those temperate rate expectations, there was also offset on Monday. New York's latest home survey saw year inflation expectations still constantly about 3%.
The International Monetary Fund said on Tuesday that it was too early to assess the impact of Trump's tariff plans.
But with crude oil prices rising again and another heavy week of Treasury auctions and inflation data ahead, a product pushed 10 years ago above 4.5%.
Part of that backup was linked to Trump's slightly strange reference on the weekend for calculating a possible fraudulent Treasury debt – another aside which became largely unexplained but was associated with an audit ' The Government's Efficiency Department 'Musk from Treasury accounts.
Elsewhere, Mainland and Hong Kong Chinese stocks slipped back on the War News Tariff Mounting – recently cooling a rally on the development of China Deepseek AI.
But also worried there was news that China car sales fell by 12% in January from a year earlier. It was the first decline since September and the largest fall in nearly a year as automators approximate for tariffs and price wars amid intense competition worldwide. Shares in Chinese Xpeng and Geely automators fell up to 10%.
In Europe, stock indices were firmer.
In News News, BP reported a sub-preserving quarterly profit which was the lowest in four years as the oil giant promised to replace its strategy following the news of the news investor Elliott Management has built a share in the company.
On Monday, BP shares jumped 7% on expectations that Elliott's acquisition of the unveiled share would force change.
Key developments that should provide more direction to US markets later on Tuesday:
* US January Small Business Survey
* Chair of the Federal Fund Semiennial Financial Policy Evidence Jerome Powell before the Parliament, Housing and Urban Affairs Committee. The Governor of the Fed Board Michelle Bowman, President of New York Fed John Williams and Cleveland th Hammack's main thing is all speaking. Bank of England Governor Andrew Bailey is talking
* EU Commission President Ursula von der Leyen meets US Vice President JD Vance in Paris
* US corporate earnings: DuPont de Nemours, Super Micro Computer, Coca-Cola, Marriott, AIG, Assurant, S&P Global, Ecolab, Eversource Energy, Gilead, Edwards Lifesciences, Humana, Eversource, Masco, Rystotower etc.
