Last Updated: 4:51 PM EST
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Stock indices finished today’s trading session in the red following Trump’s tariff announcement. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) fell 0.84%, 0.76%, and 0.28%, respectively.
Earlier today, Atlanta Fed President Raphael Bostic stated that the Federal Reserve may wait a while before adjusting its policy rate again. Bostic wants to assess the impact of the Fed’s 100 basis points of rate reductions before making the next move. He also said that economic uncertainty is higher today than it was back on December 31 due to factors like tariffs, geopolitical events, and natural disasters that could affect the economic outlook.
Unsurprisingly, Bostic reaffirmed the Fed’s commitment to reaching its 2% inflation target but acknowledged that housing inflation has been a major obstacle. Still, he believes that shelter inflation will eventually subside and remains optimistic about the labor market by predicting that it will remain solid.
He also pointed out that GDP has maintained its strength and that many business leaders are confident about 2025. The Atlanta Fed will continue to monitor the situation by using surveys and other tools to stay flexible in its outlook.
Separately, the U.S. economy is showing signs of life, with two key indicators pointing to growth. The Institute for Supply Management (ISM) reported that the manufacturing sector expanded for the first time in 26 months, with a reading of 50.9 that beat expectations. This uptick was driven by improved demand, increased production, and better supplier delivery times.
Meanwhile, the U.S. Census Bureau announced that construction spending rose 0.5% in December to $2.192 trillion, surpassing forecasts. Residential construction led the charge, with a 1.5% increase in spending, while nonresidential construction edged up 0.1%.
First Published: 4:02 AM EST
U.S. futures trended lower on Monday morning as investors assessed the impact of President Donald Trump’s new tariffs imposed on China, Mexico, and Canada over the weekend. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were down 1.85%, 1.23%, and 1.48%, respectively, at 3:57 a.m. EST, February 3.
The U.S. announced a 25% tariff on goods imported from Mexico and Canada and a 10% levy on goods from China. Following this announcement, Canada retaliated with its own tariffs, while Mexico signaled its intent to explore similar measures. Further, China disclosed plans to file a lawsuit with the World Trade Organization. These actions raised concerns about escalating trade tensions.
Prior to the tariff announcement, the major U.S. indices posted solid gains in January. The S&P 500, the Nasdaq Composite, and the Dow Jones rose 2.7%, 1.6%, and 4.7%, respectively.
Looking ahead, traders are awaiting key economic reports, including the Manufacturing Purchasing Managers’ Index (PMI) and Construction Spending data, due today. Further, Job openings and Factory Orders data points will be released tomorrow.
Moreover, the S&P final U.S. services PMI, employment data by Automatic Data Processing (ADP), U.S. unemployment rate, and preliminary report for Consumer sentiment will be made public this week.
Investors are now bracing for a busy corporate earnings week. Over 120 S&P 500 companies are scheduled to release earnings reports, including major players like Amazon (AMZN), Alphabet (GOOGL), PayPal (PYPL), Roblox (RBLX), Pinterest (PINS), Mondelez (MDLZ), Ford (F), Uber (UBER) and Walt Disney (DIS).
Today, Palantir (PLTR), Tyson Foods (TSN), and NXP Semiconductors (NXPI) are scheduled to report their quarterly numbers.
Meanwhile, the U.S. 10-year treasury yield was down, floating near 4.543%. Simultaneously, WTI crude oil futures are trending higher, hovering near $74.32 per barrel as of the last check.
Elsewhere, European indices opened lower on Monday as investors digested Trump’s tariff announcement and his threats to impose similar measures on the European Union and the U.K.
Asia-Pacific Markets Traded Lower on Monday
Asia-Pacific indices closed in the red today as traders assessed Trump’s move to impose new tariffs, which spiked fears of a global trade war.
At the same time, the Hang Seng index closed lower by 0.04%. Also, Japan’s Topix and Nikkei indices declined by 2.45% and 2.66%, respectively.
Investors should note that the China market remained closed today for the Lunar New Year holidays.
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