Market Recap: Stocks Rebound as Steel Tariffs Boost Metal Producers
Major Indexes Close Higher Amid Trade Tensions
On Monday, February 10, 2025, U.S. stock markets rebounded from last week’s losses, with major indexes closing in positive territory. The S&P 500 (SPX) gained 0.64% to close at 6,064.57, while the Dow Jones Industrial Average (DJI) rose 0.16% to 44,374.63. The tech-heavy Nasdaq Composite (IXIC) outperformed, climbing 1.16% to 19,750.35.
Trump’s Tariff Announcement Shakes Markets
The day’s trading was largely influenced by President Donald Trump’s announcement of new 25% tariffs on all steel and aluminum imports into the United States. This move, coming on top of existing duties, sparked a rally in U.S. steel and aluminum stocks. Cleveland-Cliffs (CLF) surged 18.72%, while other producers like Nucor (NUE) and U.S. Steel (X) also saw significant gains.
Tech Sector Leads the Rebound
Technology stocks, which had faced pressure last week, led the market’s recovery. Nvidia (NVDA) rose 3.41%, while other tech giants like Microsoft (MSFT) and Alphabet (GOOGL) climbed more than 1% each. The sector’s rebound was partly attributed to investors’ continued interest in artificial intelligence (AI) stocks, despite recent scrutiny of tech companies’ AI investments.
McDonald’s Earnings Disappoint
In corporate news, McDonald’s (MCD) reported a surprise decline in its U.S. comparable sales for the fourth quarter. Despite this setback, the fast-food giant’s stock managed to gain 4.51% as investors focused on its global performance and future prospects.
Energy Sector Gains on Oil Price Rise
Energy stocks performed well, with the sector up 1.7% as oil prices climbed. Crude oil futures rose 1.75% to $72.24 per barrel, boosting the outlook for energy companies.
Gold Hits Record High
Gold prices surged to a new record high, rising 1.6% to $2,933.90 per ounce. The precious metal’s rally was fueled by investor concerns over trade tensions and potential inflationary pressures from the new tariffs.
Upcoming Market Events
Investors are now turning their attention to several key events this week:
1. Federal Reserve Chair Jerome Powell’s semi-annual economic testimony to Congress on Tuesday and Wednesday.
2. The release of the Consumer Price Index (CPI) data on Wednesday, which will provide insights into inflation trends.
3. Retail sales data, scheduled for release on Friday.
Corporate Earnings in Focus
Several notable companies are set to report earnings this week, including:
– Coca-Cola (KO)
– DoorDash (DASH)
– CVS Health (CVS)
– Cisco Systems (CSCO)
These reports will offer further insights into consumer spending patterns and corporate performance across various sectors.
International Markets and Currency Movements
Asian markets showed mixed performance, with the Nikkei Index gaining slightly and the Hang Seng Index advancing more significantly. In Europe, both the German DAX and FTSE 100 posted gains.
In currency markets, the U.S. dollar strengthened against major peers, with the euro trading at 1.0329 and the Japanese yen at 152.17 against the dollar.
Looking Ahead
As markets digest the impact of new tariffs and await key economic data, volatility may persist in the coming days. Investors will be closely watching for signs of inflationary pressures and any shifts in Federal Reserve policy stance that could affect interest rate expectations.
The technology sector’s resilience and the performance of AI-related stocks will remain in focus, as will the broader implications of trade tensions on global economic growth. With a busy week of earnings and economic data ahead, market participants should brace for potential swings in sentiment and asset prices.
