US stocks moved higher on Tuesday as investors assessed China’s instant retaliation to US President Donald Trump’s additional tariffs amid worries about the risk of a trade war.
Traders also took in fresh jobs data, with job openings declining more than expected in December. Investors are continuing to watch any signs of cooling in the labor market as the Federal Reserve debates future interest rate cuts in the face of sticky inflation.
The Dow Jones Industrial Average (^DJI) gained around 0.2%, while the benchmark S&P 500 (^GSPC) rose roughly 0.7%. The tech-heavy Nasdaq Composite (^IXIC) jumped about 1.2% on the heels of a losing day for stocks.
Beijing reacted swiftly on Tuesday to Trump’s additional 10% levies on Chinese imports going into effect at midnight. China slapped tariffs of 15% on US coal and liquified natural gas, starting Feb. 10, alongside 10% duties on imports of crude oil, farm equipment, and some autos.
The tit-for-tat measures raise the risk of an escalation into trade war that would damage both of the world’s top two economies. But some on Wall Street see the Chinese response as showing restraint that opens the door to compromise, as seen in the US tariff postponement deals with Mexico and Canada.
Giving more cause for optimism, Trump brought forward talks with China’s President Xi Jinping. He said on Monday they would take place “probably over the next 24 hours,” rather than later in the week.
The US dollar index (DX-Y.NYB) fell, down about 0.9% as worries eased somewhat.
Meanwhile, China opened an antitrust investigation into Alphabet’s (GOOG, GOOGL) Google and added Calvin Klein owner PVH (PVH) and biotech company Illumina (ILMN) to its “unreliable entities list.”
Alphabet shares were up about 2% in early trading, as investors wait for the tech megacap’s fourth quarter results due after the bell. The focus is on insights into the tech giant’s efforts to turn its massive AI investments into new revenue streams and its response to Chinese startup DeepSeek’s cheaper AI models.
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Fox says it will develop and launch its own streaming service
Fox (FOXA) is about to enter the competitive streaming marketplace with its own direct-to-consumer service, expected to launch by the end of this year.
Fox CEO Lachlan Murdoch made the announcement during the company’s fourth-quarter earnings call on Tuesday, saying that while the traditional cable bundle still presents “the most value” for both Fox’s customers and its business, “we do want to reach consumers wherever they are.
Analysts have said Fox’s assets have been heavily skewed toward the linear pay TV ecosystem at a time when more consumers are cutting the cable cord in favor of less expensive streaming services.
To that point, Murdoch said the new service will target the “cord-cutters” and the “cord-nevers.” The company plans to release more details regarding the launch in the coming months.
Fox’s management had hinted at plans to explore more streaming options. The new service it just announced comes after the abrupt dismantlement of Venu Sports, a sports streaming service that was supposed to launch from Fox, Warner Bros. Discovery, and Disney’s ESPN (DIS).
At a Politico event on Tuesday morning, Trump’s senior counselor for trade and manufacturing Peter Navarro said the president’s call with Chinese leader Xi Jinping will take place today and that a tariff pause will be on the table.
“It is fundamentally different,” former US trade representative general counsel Greta Peisch said in an interview, noting that Trump is now “breaking new ground in what is a trade authority, what are they used for, and how expensive the transactions will be.”
Vaccine stocks fall after RFK Jr. nomination advances to Senate
Vaccine stocks Moderna (MRNA), Pfizer (PFE), and BioNTech SE (BNTX) all fell following news that Robert F. Kennedy Jr. cleared a key committee vote in his quest to lead the Health and Human Services Department.
Kennedy’s nomination now heads to the Senate, which is widely expected to approve his nomination.
Sen. Bill Cassidy (R-Louisiana), a medical doctor, had been a key swing vote in the Senate Finance Committee. The senator confirmed his decision in a post on X, writing, “With the serious commitments I’ve received from the administration and the opportunity to make progress on the issues we agree on, like healthy foods and a pro-American agenda, I will vote yes.”
The final tally was 14-13, with every Republican voting in favor of Kennedy’s nomination. Every Democrat on the committee voted against it.
Today at 5:00 PM UTC
Sector check: Tech leads stocks higher
Tech stocks led the major averages higher on Tuesday, with the Nasdaq Composite (^IXIC) gaining around 1% in early afternoon trading.
Alphabet (GOOGL, GOOG) jumped nearly 2% to reach intraday record highs — its third intraday record of 2025. Shares are also currently on track for another record close.
Apple (AAPL), Amazon (AMZN), and Microsoft (MSFT) also rose, while AI chip heavyweight Nvidia (NVDA) climbed more than 2% in early trading as it attempted to stage a comeback from previous session losses of over 2.5%.
Today at 4:30 PM UTC
Palantir stock soars after strong earnings
Palantir (PLTR) was the No. 1 trending ticker on Yahoo Finance early Tuesday after the intelligence software company’s quarterly and annual revenue forecasts exceeded expectations.
Shares rocketed roughly 25% to a fresh record high. Investors applauded solid demand for the company’s artificial intelligence products, which included higher US commercial and government sales in the quarter.
Palantir has greatly benefitted from the AI boom, with shares up nearly 1,000% over the past five years. Still, its hefty market cap of over $239 billion has long been questioned by analysts.
On the earnings call, the company addressed DeepSeek concerns following last week’s sell-off.
“We would strongly discourage [DeepSeek] and don’t think any customer in the US government will be able to use it,” said Ryan Taylor, Palantir’s chief revenue officer.
Today at 3:30 PM UTC
Oil pares losses despite China trade tensions
Oil pared losses after sliding as much as 3% following China’s announcement of retaliatory tariffs on some US imports, including oil and liquified natural gas.
West Texas Intermediate (CL=F) recovered to trade near $72.80 per barrel, while Brent (BZ=F), the international benchmark price, also cut losses of more than 2% to trade around $76 per barrel.
Earlier in the session, crude reacted to China’s announcement that starting next Monday, it would impose levies of 15% on US-imported coal and liquified natural gas (LNG) and 10% for crude oil.
This came in retaliation to the Trump administration’s implementation of additional 10% tariffs on all Chinese imports on Tuesday. On Monday, President Trump paused tariffs against Mexican and Canadian imports, which would’ve included oil.
Today at 3:03 PM UTC
Job openings fall more than expected in December
Job openings declined more than expected in December as investors continue to watch closely for any signs of cooling in the labor market.
New data from the Bureau of Labor Statistics released Tuesday showed there were 7.6 million jobs open at the end of December, a decrease from the 8.15 million seen in November.
The November figure was revised higher from the 8.01 million open jobs initially reported. Economists surveyed by Bloomberg had expected Tuesday’s report to show 8 million openings in November.
The Job Openings and Labor Turnover Survey (JOLTS) also showed 5.46 million hires were made during the month, down from the 5.37 million made during November. The hiring rate was flat at 3.4% for the third straight month. Also in Tuesday’s report, the quits rate, a sign of confidence among workers, was 2% in December, unchanged from the month prior.
Today at 2:36 PM UTC
Stocks open mixed
US stocks opened mixed on Tuesday as investors continued to assess back-and-forth tariff developments, with China responding to President Trump’s 10% tariffs with its own duties on US goods.
The Dow Jones Industrial Average (^DJI) edged down roughly 0.1%, while the benchmark S&P 500 (^GSPC) opened just around the flatline. The tech-heavy Nasdaq Composite (^IXIC) rose about 0.2% on the heels of a losing day for stocks.
Today at 1:07 PM UTC
Google shares shrug off China move ahead of earnings
Google is facing a new antitrust probe in China as Beijing responds to Trump’s “first salvo” of tariffs with a warning shot showing where it thinks it can hit the US hard.
But shares in Google owner Alphabet’s (GOOG, GOOGL) inched higher in pre-market, rising almost 1%, even as Big Tech eyes a potential hit from Trump’s tariffs itself.
Investors may well be holding fire for the megacap tech’s fourth quarter results, due after the bell, to get a steer on whether its massive AI spending is about to pay off. China has already brought one challenge to Alphabet in the shape of Chinese startup DeepSeek’s cheaper AI models.
At the same time, some on Wall Street see the Google parent as more insulated than its peers from tariff risk, given its cloud and ad strength stand to offset AI stumbles. Though there is a chance that the market is underpricing tariff risk — or is just baffled as to what Trump will do next, as Yahoo Finance’s Josh Schafer reports.
Today at 12:35 PM UTC
Spotify stock jumps after company turns first full year of profit
Shares of Spotify (SPOT) climbed over 9% before the bell on the heels of upbeat quarterly results. The stock has already surged roughly 150% over the past year, as of Monday’s close.
Yahoo Finance’s Alexandra Canal reports:
Spotify Technology posted fiscal fourth quarter earnings on Tuesday that beat revenue expectations, as it reported its first full-year profit.
The audio giant also posted another strong quarter of subscriber gains, as levels of churn remain low despite recent price increases.
The results follow an intense business overhaul, which has included everything from mass layoffs and C-suite shakeups to a major strategic shift away from podcasts — an area it had aggressively pursued. Those efforts allowed the stock to stage a comeback from the record lows it faced in 2022.
Europe’s stock markets trod water on Tuesday, as investors eyed the US-China exchange of tariff fire for clues to what duties Trump might hit the EU with.
The pan-European Stoxx 600 (^STOXX) wavered below the flat line as a series of corporate earnings shifted the mood. Germany’s DAX (^GDAXI) retraced deeper morning losses to trade little changed, while the CAC 40 (^FCHI) in Paris was more upbeat, with a 0.3% gain. The FTSE 100 (^FTSE) in London trended lower.
The food giant’s 2025 sales and EPS guidance were relatively in line with consensus. The Street may have some concern about the company hitting those targets, judging by how the fourth quarter played out. Pressure was on the top and bottom lines in the company’s two most important segments: Frito Lay and North America beverages.
PepsiCo continues to see heightened competition in its categories and low-income consumers spending cautiously, given years of price increases.
Its shares are off by 2.5% in the pre-market.
I am talking to PepsiCo (PEP) chair and CEO Ramon Laguarta ahead of his earnings call today at around 7:45 a.m. ET, so I will jump back in here with more insights.
Today at 11:11 AM UTC
Good morning. Here’s what’s happening today.
Economic data: Job openings (December); factory orders (December); durable and capital goods orders (December final)
Want to be amused by an earnings call? Listen to Palantir (PLTR) CEO Alex Karp on his quarterly calls.
The guy is a real hoot (and just an interesting character in tech more broadly).
I think Karp gave the type of earnings call we will begin to hear from this new crop of tech players during the Trump administration. Antagonistic. Hype filled. Boastful. But he also has the numbers to back up the smoke-blowing, in part because of 1) a strong enterprise-tech spending cycle; 2) optimism on critical infrastructure spending by Trump.
The company beat analysts’ sales estimates by an impressive $59 million.
“We believe Palantir is the best story in all of software,” said DA Davidson analyst Gil Luria in a note this morning.
Shares are up 18% pre-market. The ticker page is the most active on the Yahoo Finance platform.
Today at 6:43 AM UTC
China investigates American companies including Google over monopoly measures
China announced on Tuesday that it has launched an anti-monopoly investigation into Alphabet’s Google (GOOG) and placed two US companies on its “unreliable entity list.” This move coincided with the US implementing new tariffs on Chinese goods.
Alongside the regulatory body exploring American firms, China imposed tariffs on some US products, including coal and oil, in retaliation to the fresh US duties. This marks the first retaliation in the ongoing trade tensions between the world’s two largest economies.
In addition to Google, China’s Commerce Ministry added PVH Corp (parent company of brands like Calvin Klein) and US biotech firm Illumina to its “unreliable entity” list of companies that have taken actions that cause “damage” to Chinese companies and interests.
Today at 5:00 AM UTC
Gold hovers near record high on tariff concerns
Gold (GC=F) rose toward a record high as President Donald Trump’s tariff threats and delays boost demand for a stable asset.
Spot gold rose to $2,850 an ounce before dropping back from an all-time high as Trump said he would enact a 30-day pause on tariffs of 25% against Canada and Mexico. The switch in plans saw the dollar retreat from the highest level in more than two years, making the precious metal cheaper for US buyers.
Markets remain unsettled about the future, boosting gold’s appeal as a safe haven. From Tuesday, Washington is set to impose a 10% tariff on Chinese imports, though Trump has indicated he plans to discuss the proposed tariffs with Beijing “in the next 24 hours.”
Key concerns revolve around how the US economy will fare in the face of a potential trade war, as well as the broader implications for monetary policy if tariffs spark inflation. The Federal Reserve opted to pause rate cuts last month, taking a “wait-and-see” stance on the new administration’s policies.
