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
US main stock indices rose slightly on Friday, with small-cap stocks outperforming after a tame inflation report, suggesting the Federal Reserve could shift its focus toward the labor market while continuing its path of interest rate easing.
The Commerce Department's report indicated that consumer spending grew moderately in August, maintaining the economy's solid momentum in the third quarter while inflation pressures continued to ease. This gave the Fed more room to address rate cuts. “It’s a relief to have inflation moving in the right direction,” said Joe Saluzzi, co-head of equity trading at Themis Trading, who noted that the key issue is whether the Fed will continue cutting rates in the coming year.
Markets now assign a 52.1% chance of a 50 basis-point rate cut at the Fed's November meeting, with the likelihood of a 25 basis-point cut standing at 47.9%, according to the CME Group's FedWatch Tool.
At 9:55 a.m. ET, the Dow Jones Industrial Average rose 141.53 points (0.34%) to 42,316.64, while the S&P 500 and Nasdaq Composite posted modest gains of 0.08% and 0.07%, respectively. The Russell 2000 index, which tracks small-cap stocks, outperformed with a 0.7% rise.
Among S&P 500 sectors, energy stocks led the gains, up 1.1%, while tech stocks like Nvidia and Amazon dipped, weighing on the Nasdaq.
Investors are also keeping an eye on the labor market, with upcoming reports expected to influence the Fed's future decisions on rate cuts. Consumer sentiment improved, with the University of Michigan’s September estimate rising to 70.1, above expectations.
On the corporate front, Bristol-Myers Squibb jumped 2.3% after receiving FDA approval for its schizophrenia drug, while Costco Wholesale fell 2.8% following weaker-than-expected quarterly revenue.
Meanwhile, Chinese stocks listed in the US, including Alibaba, PDD Holdings, and NetEase, saw gains after China's central bank implemented fresh stimulus measures by lowering interest rates and injecting liquidity into the banking system.
Overall, advancing issues outpaced decliners significantly, reflecting the market’s positive sentiment amid easing inflation and expectations of continued rate cuts.
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