American stocks rose on Monday, as they bounced from sharp losses, as steel makers gathered after President Donald Trump said that he would impose a new tariff on steel and aluminum imports.
Dow Jones Industrial Malce (^DJI) added 0.6 %, after the blue chip index booked its worst loss in nearly four weeks. The S&P 500 (^GSPC) increased by approximately 0.5 %, while the nasdaq technology compound (^IXIC) decreased by 0.7 %.
Investors weigh that Trump’s pledge on Sunday to provide an additional 25 % tariff on steel and aluminum from all countries, with the expectation of the official announcement on Monday.
The new metal tariffs from American steel companies, whose shares jumped. Both shares in Cleveland-Clevs (CLF) and NUCOR (NUE) increased more than 8 %, while the American steel (X) was placed on 6 %-although the questions remain about the proposed acquisition of Nippon Steel. The stock of aluminum product (AA) has also acquired.
This step represents another escalation in Trump’s quick reform and the possibilities of trade war. The main suppliers in the United States Canada and Mexico – who are already threatened with increased tariffs, are currently temporarily – a major impact.
The markets were already preparing for mutual definitions, which Trump said would be announced on Tuesday or Wednesday, with an immediate impact. The definitions will be applied to all commercial partners and will match the duties imposed on American products by each country.
But the gains made by the US shares on Monday indicate that investors are accustomed to Trump’s trade. Many people now say that the ads are tactics negotiating only, some of them in Wall Street.
However, the markets are concerned that the increasing list of raising the tariff may lead to an increase in inflation, and it is likely to stop cuts in the interest rate. The consumer price index will be seen in January on Wednesday to obtain evidence, in addition to the week’s updates on retail sales.
On the corporate front, 78 S&P 500 company is scheduled to report profits this week. McDonald’s revenues (MCD) disappointed. Coca-Cola (Ko), Super Micro Computer (SMCI) and Airbnb (ABNB) have been set to follow this week.
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