Stock Market News: Dow Set to Rise
It’s not just Chinese artificial intelligence startup DeepSeek that could rattle stocks this week. As investors nursed their wounds from a brutal tech selloff, U.S. President Donald Trump expressed a preference for sizable universal tariffs, sending the dollar higher early Tuesday.
Trump told reporters on board Air Force One that he would impose large enough levies on foreign imports “to protect our country,” adding that he favored a “much bigger” rate than the 2.5% figure reportedly proposed by Treasury Secretary Scott Bessent.
Trump’s comments could be another blow for chip stocks, given how reliant the sector is on imports from Taiwan.
Nvidia, one of the “Magnificent Seven” that powered stock index gains for the past two years, is reeling from the biggest slump in market history. Its shares plummeted 17% on Monday, wiping out an eye-watering $593 billion in valuation. The selloff came after DeepSeek’s AI assistant–seemingly made on the cheap–topped Apple’s app store, raising questions about how long the tech spending boom will last.
The early signs suggested that the rout wouldn’t extend into Tuesday’s trading session. Futures tracking the Dow Jones Industrial Average lost 37 points, or 0.1%, after wavering between slight gains and losses all morning. Contracts tied to the S&P 500 were up 0.1%. Nasdaq 100 futures climbed 0.3% after the rise of DeepSeek led to the tech-heavy index plummeting 3% Monday.
Meanwhile, the WSJ Dollar Index–a gauge tracking the greenback against 16 other currencies–climbed 0.7% off the back of Trump’s tariff pledge, while yields on 10-year U.S. government bonds ticked up 3 basis points to 4.569%.
Plane maker Boeing, Chevrolet owner General Motors, and coffeehouse chain Starbucks are among the publicly-listed companies set to file earnings reports on Tuesday.
And don’t forget about the Federal Reserve. The central bank’s first meeting since Trump returned to the Oval Office kicks off today, although investors are all but certain that policymakers will hold benchmark interest rates at their current level of about between 4.25% and 4.5%.