Investors push markets higher while steel stocks jump after Trump signals 25% tariffs on imports
On Monday, stocks climbed as major tech companies led gains, with traders largely looking past President Donald Trump's latest tariff threats, according to CNBC.
The Dow Jones Industrial Average rose 167.01 points, or 0.38 percent, closing at 44,470.41, driven by a 4.8 percent increase in McDonald’s stock.
The S&P 500 gained 0.67 percent, finishing at 6,066.44, while the Nasdaq Composite advanced 0.98 percent to close at 19,714.27.
Despite market gains, concerns over inflation and Trump’s tariff policy continue to create uncertainty about the US economy.
On Sunday, Trump announced plans for a blanket 25 percent tariff on all steel and aluminum imports, although he did not specify when the new duties would take effect. He also stated that he would impose retaliatory tariffs on countries that tax US imports.
This follows previously announced tariffs on China.
Steel and aluminum stocks responded positively to the news.
US Steel climbed 4.8 percent, while Nucor gained 5.6 percent. Cleveland-Cliffs saw a nearly 18 percent jump, and Alcoa ended the session 2.2 percent higher.
Chipmakers also saw gains, reversing some of the declines experienced during the late January sell-off caused by concerns over Chinese AI startup DeepSeek.
Nvidia rose 2.9 percent, while Broadcom and Micron increased 4.5 percent and 3.9 percent, respectively. Megacap tech stocks, including Alphabet, Amazon, and Microsoft, also posted gains.
JPMorgan’s head of cross-asset strategy, Fabio Bassi, stated in a client note that “the volatility around DeepSeek and concerns over tariffs do not derail our positive outlook on risk assets, especially in the US.”
He added that short-term volatility may persist due to tariff-related headlines and a potential April bill passage in the US but reaffirmed the bank’s 6,500 year-end target for the S&P 500.
The tariff threat comes ahead of key economic data releases in the US this week.
The US’s January consumer price index report is set for release on Wednesday at 8:30 am ET, followed by initial weekly jobless claims and the producer price index on Thursday.
Additionally, Federal Reserve Chair Jerome Powell is scheduled to testify before Congress on Tuesday morning.
The Wall Street Journal reported that major overseas stock markets also rose despite Trump's tariff announcement, with the Stoxx Europe 600 advancing to a new record.
Investors are now focusing on upcoming economic data and Federal Reserve Chair Jerome Powell's testimony before Congress, which could provide further insights into the US economic outlook.
