Market Recap: Tech Rebounds, Steel Surges Amid Trump’s Tariff Announcement
Major Indexes Close Higher as Tech and Steel Sectors Lead Gains
On Monday, February 10, 2025, U.S. stock markets rallied, 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 Nasdaq Composite (IXIC) outperformed, climbing 1.16% to 19,750.35, driven by a strong rebound in technology stocks.
Tech Sector Bounces Back
After a steep decline last week, heavyweight technology stocks staged a comeback. Nvidia (NVDA) led the charge with a 3.2% gain, while Microsoft (MSFT) and Alphabet (GOOGL) each climbed more than 1%. The tech sector’s resilience was attributed to ongoing investor interest in AI-related stocks, despite recent challenges posed by the emergence of cheaper AI models from competitors like Chinese startup DeepSeek.
Steel and Aluminum Stocks Surge on Tariff News
President Donald Trump’s announcement of new tariffs on steel and aluminum imports sparked a rally in U.S. steel and aluminum producers. The VanEck Steel ETF (SLX) jumped 2.6%, with individual stocks posting significant gains. Cleveland-Cliffs (CLF) surged 11.7%, U.S. Steel (X) advanced 4%, and aluminum producer Alcoa (AA) rose 2.3%. The proposed 25% tariff on all steel and aluminum imports is expected to provide a boost to domestic producers.
Energy Sector Gains on Rising Oil Prices
Energy stocks in the S&P 500 sector (.SPNY) climbed 1.7%, tracking elevated oil prices. This uptick in the energy sector contributed to the overall positive performance of the market.
Corporate Earnings in Focus
Earnings reports continued to influence individual stock movements. McDonald’s (MCD) shares jumped 5.1% after the fast-food giant reported a surprise increase in global comparable sales for the fourth quarter. Rockwell Automation (ROK) also impressed investors, gaining 11.1% following better-than-expected first-quarter profits.
Upcoming Market Events
Investors are keeping a close eye on several key events this week:
1. Federal Reserve Chair Jerome Powell is scheduled to testify before Congress, which could provide insights into the central bank’s monetary policy outlook.
2. The January Consumer Price Index (CPI) report is set to be released on Wednesday morning, offering crucial data on inflation trends.
3. Several prominent companies are slated to report earnings, including Coca-Cola (KO), DoorDash (DASH), CVS Health (CVS), and Cisco (CSCO).
Market Breadth and Investor Sentiment
Market breadth was decidedly positive, with advancing issues outnumbering decliners by a 1.82-to-1 ratio on the NYSE and a 1.19-to-1 ratio on the Nasdaq. The S&P 500 posted 12 new 52-week highs and 13 new lows, while the Nasdaq Composite recorded 70 new highs and 135 new lows.
International Markets and Currency Movements
In currency markets, the U.S. dollar strengthened against major peers, including the yen, euro, and Canadian dollar, following President Trump’s tariff announcement. This move reflects investors’ perception of potential trade tensions and their impact on global economic growth.
Looking Ahead
As the week progresses, market participants will closely monitor the developments surrounding the proposed tariffs, upcoming earnings reports, and key economic data releases. The testimony of Fed Chair Powell and the CPI report will be particularly crucial in shaping expectations for future interest rate decisions and overall market direction.
In conclusion, Monday’s market performance demonstrated resilience in the face of potential trade disruptions, with technology and steel sectors leading the gains. However, investors remain cautious as they await further clarity on both domestic and international economic policies.
