Expect significant new tariffs on Chinese imports and moderate levies on goods from other nations , as President-elect Donald Trump rolls out his protectionist agenda. However, with his preference for chaotic policymaking and sudden shifts , there’s uncertainty on how soon these import taxes will actually hit. Dubbed “ Tariff Man ,” Trump aims to use tariffs both strategically and tactically . He’s mentioned taxing all Chinese goods up to 60% and potentially setting 10%-20% tariffs on imports globally , but details on these plans remain vague . Key players within Trump’s team are divided: Robert Lighthizer , a staunch tariff advocate, sees permanent duties as crucial to balance US trade , while others, like billionaires John Paulson and Scott Bessent , view tariffs as temporary leverage. Trump’s previous administration had mixed feelings, especially on national security-related trade limits , which he sometimes dismissed, favoring an “open for business” approach. High-profile busin
The Nasdaq and the S&P 500 rose on Monday, buoyed by megacap stocks as investors awaited Big Tech results, a US Federal Reserve (Fed) policy decision, and crucial labor numbers this week.
Key Takeaways:
Megacap Stocks Rally: Nvidia, Alphabet, Amazon.com, and Meta Platforms rose between 0.6% and 1.5%, following a recent downturn in megacap tech shares that had pushed major stock indices downward last week.
Market Performance:
- Nasdaq Composite: Up 116.46 points (0.67%) at 17,474.34
- S&P 500: Up 11.18 points (0.20%) at 5,470.28
- Dow Jones Industrial Average: Down 140.72 points (0.35%) at 40,448.62
Sector Gains: The S&P 500 consumer discretionary index led sectoral gains with a 0.9% rise, driven by a 4.4% jump in Tesla shares. Morgan Stanley added Tesla to its US autos list as a "top pick."
Last Week's Market Movement:
- Major US stock indices jumped more than 1% last Friday, buoyed by an encouraging US inflation report and data suggesting a loosening jobs market.
- However, the S&P 500 and the Nasdaq closed the week lower after a disappointing start to tech earnings triggered the steepest one-day slide since 2022 last Wednesday.
Upcoming Earnings: Investors are closely watching earnings from Microsoft, Meta, Apple, and Amazon.com starting on Tuesday to gauge if the AI-led equity rally can continue.
Market Rotation: Investors are considering a rotation into mid and small caps. The Russell 2000 small-cap index was up 0.1% after a three-week winning streak.
Fed Policy Expectations: Hopes are pinned on the Fed signaling a rate cut in September during Wednesday's policy decision. Odds for a 25-basis-point reduction are at 89%, according to the CME's FedWatch. Any hawkish commentary could trigger renewed selling pressure in equities.
Employment Reports: A series of employment reports this week, including non-farm payrolls, will be scrutinized for insights into the labor market.
Crypto Stocks Surge: Coinbase Global, Riot Platforms, and Marathon Digital gained between 2.4% and 3.6% as bitcoin prices jumped to a seven-week high.
Notable Decliners: Abbott Laboratories dropped 4.1% to the bottom of the S&P 500 after being ordered to pay US$495 million in damages due to its formula for premature infants causing a dangerous illness.
Market Breadth: Advancing issues outnumbered decliners by a 1.23-to-one ratio on the NYSE and by a 1.09-to-one ratio on the Nasdaq. The S&P index recorded 15 new 52-week highs and one new low, while the Nasdaq recorded 73 new highs and 29 new lows.
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