US stocks rose on Monday, eyeing a bounce back from sharp losses as steelmakers rallied after President Donald Trump said he will impose new tariffs on steel and aluminum imports.
The Dow Jones Industrial Average (^DJI) added 0.3% after the blue-chip index on Friday booked its worst loss in nearly four weeks. The S&P 500 (^GSPC) rose roughly 0.7%, while the tech-heavy Nasdaq Composite (^IXIC) popped more than 1% as shares of Nvidia (NVDA) surged.
The new metals tariffs are likely to benefit US steel companies, whose stock jumped. Shares in Cleveland-Cliffs (CLF) surged over 14%, while Nucor (NUE) rose nearly 7%. US Steel (X) put on 3%, as questions remain about a proposed Nippon Steel buyout. Aluminum producer Alcoa’s (AA) stock also gained.
The move marks another escalation in Trump’s fast-moving policy overhaul and in the odds of a trade war. Major US suppliers Canada and Mexico — already threatened with tariff hikes, currently on pause — face significant impact.
Markets were already bracing for reciprocal tariffs, which Trump said will be announced on Tuesday or Wednesday, with immediate effect. The tariffs will apply to all trading partners and will match the duties levied on US products by each country.
But Monday’s gains for US stocks suggest that investors are getting used to Trump’s trade salvos. Some on Wall Street say many now see the announcements as a negotiation tactic only.
That said, markets are concerned the growing list of tariff hikes could drive up inflation, likely to stall interest rate cuts. The January Consumer Price Index reading due on Wednesday will be closely watched for clues, alongside the week’s updates on retail sales.
On the corporate front, 78 S&P 500 companies are set to report earnings this week. McDonald’s (MCD) shares rose after same-store sales grew, beating expectations. Coca-Cola (KO), Super Micro Computer (SMCI), and Airbnb (ABNB) are set to follow this week.
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Trump tariffs may trigger ‘painful’ stagflationary shock: Economist
Yahoo Finance’s Brian Sozzi reports:
Markets may be trying to figure out the impact of a full-on Trump trade war with Europe, China, Canada, and Mexico.
But one prominent economist says the eventual outcome could be singular.
Apollo Global Management (APO) chief economist Torsten Sløk told me on Yahoo Finance’s Opening Bid that a full-scale US trade war against the world would deliver a “stagflationary shock” to the US economy. Stagflation is defined as a period of slow growth and high inflation. It’s a tariff-related warning also recently issued by billionaire investor Ray Dalio. (Disclosure: Yahoo Finance is owned by Apollo Global Management.)
“So the short-run effects of a trade war [are] certainly painful. Even this might be small numbers, but it’s certainly something that’s negative,” Sløk said on Monday (see video above; listen below).
Donald Trump is simultaneously reworking the US trade landscape on 3 different fronts this week
Yahoo Finance’s Ben Werschkul reports:
Donald Trump’s rapid reorientation of the US trade landscape has a busy week ahead, and he could make moves on three simultaneous fronts as importers, CEOs, and foreign leaders struggle to adjust.
The uncertainty is being heightened as crucial details remain unclear, but with the president promising “highly detailed” announcements in the days ahead.
Up first this week is a newly announced plan for 25% duties on steel and aluminum, which Trump told reporters on Sunday would be announced on Monday.
The president is set to sign new executive orders at 1 p.m. ET. He said his tariff plans will apply to all imports, but it remains to be seen how these new duties overlap with existing metal tariffs.
GameStop stock surges after Ryan Cohen takes a picture with Michael Saylor
The headline is the whole story, give or take.
At midnight Saturday, this post on X emerged:
As Sherwood’s Luke Kawa notes: “Saylor runs Strategy (formerly MicroStrategy), the largest corporate holder of bitcoin. The warm market response to Cohen’s tweet suggests that traders are hoping that Cohen uses some of GameStop’s $4.6 billion in cash and cash-like securities to take a page from Saylor’s playbook. (That playbook has one rule: buy bitcoin).”
Here’s GameStop stock (GME) this morning, up as much as 7% about 30 minutes into the trading session:
Back in December 2023, GameStop’s board gave Cohen the authority to use the company’s capital to make investments, essentially laying the groundwork for GameStop to be turned into a holding company similar to the Daily Journal (DJCO) company formerly chaired by the late Charlie Munger, or, more grandiosely, Berkshire Hathaway (BRK-B, BRK-A).
Saylor’s Strategy, as Kawa notes, last week formally changed its branding and corporate goals around serving as a bitcoin holding company. (The company also has a small software business on the side.)
He also said Friday he plans to announce retaliatory tariffs this week to match the levies that countries impose on US goods. The latest policy shifts follow 10% tariffs on certain Chinese products, which went into effect on Tuesday.
Wall Street analysts have stayed bullish on gold amid the growing tariff threats.
“We continue to see gold as an effective portfolio hedge and diversifier, and believe an allocation of around 5% within a USD balanced portfolio is optimal,” Solita Marcelli, chief investment officer for the Americas at UBS Global Wealth Management, wrote in a Monday note.
Gold is up almost 10% this year so far, following a 27% rally in 2024.
Today at 2:31 PM UTC
Stocks open higher as Trump tariffs lift steel stocks
US stocks opened higher on Monday with Industrials getting a lift as investors anticipate US tariffs on steel and aluminum imports will be announced soon.
The Dow Jones Industrial Average (^DJI) added 0.6% after the blue-chip index on Friday booked its worst loss in nearly four weeks. The S&P 500 (^GSPC) rose roughly 0.5%, while the tech-heavy Nasdaq Composite (^IXIC) popped 0.7%.
On Sunday, President Donald Trump said he will impose new tariffs on steel and aluminum imports, with an announcement expected on Monday. Also, investors expect Trump to announce a retaliatory tariff plan this week.
Trade tensions have prompted investors to flock to safe-haven assets like gold. The precious metal gained more than 1% on Monday, to trade above $2,900 per ounce for the first time on record.
The year-to-date gain for gold is almost 10%, following a 27% rally in 2024.
