Tech Stocks Surge Amid Trade Tariff Tensions

The S&P 500 and the Nasdaq saw gains on Tuesday, with technology stocks leading the charge, as investors evaluated Donald Trump’s tariff announcements involving major trade partners. A 25% tariff on Canadian and Mexican imports was proposed, potentially violating a previously negotiated free-trade deal while an extra 10% tariff on Chinese imports heightened fears of potential trade disputes.

The auto industry was notably affected, with Ford and General Motors experiencing significant losses. Robert Pavlik from Dakota Wealth expressed concerns over increased costs for goods produced overseas. Meanwhile, the Dow dipped, influenced by Amgen’s 11% drop after a disappointment with its new obesity drug trial.

Speculation on future economic policies was rife, especially concerning the Federal Reserve’s potential interest rate cut in December. Treasury yields climbed following Scott Bessent’s appointment as Treasury secretary, putting pressure on equities.

(With inputs from agencies.)