US stocks were higher to kick off the week, with the S&P 500 rising 0.5%, the Nasdaq adding 0.7%, and the Dow Jones gaining about 270 points, as traders digested fresh tariff announcements and awaited key economic data along with Fed Chair Powell's testimony to Congress. Optimism surrounding corporate earnings and economic resilience helped offset lingering concerns about inflation and monetary policy.
US stocks kick off the week higher
President Trump announced plans to impose 25% tariffs on all imports of steel and aluminum into the US and said new reciprocal tariffs would also be announced this week, fueling speculation about potential trade tensions. Steel-related companies saw sharp gains on the news, with Cleveland-Cliffs surging 14.2%, Nucor up 6.2%, Steel Dynamics rising 4.3%, US Steel Corp climbing 4%, and Alcoa adding 2.8%. Industrial and materials stocks broadly benefited as investors bet on protectionist policies boosting domestic manufacturing.
McDonald's jumps
McDonald's jumped about 4.6% after reporting stronger-than-expected same-store sales for Q4, which rose 0.4%, defying analyst expectations of a 0.91% decline. The results suggested continued consumer resilience despite inflationary pressures. Meanwhile, Tesla shares slumped 2.8%, extending recent losses amid concerns over softening EV demand and pricing pressures from increased competition.
Look at the data
Looking ahead, investors are awaiting key economic data releases, including the Consumer Price Index (CPI), Producer Price Index (PPI), and retail sales reports, which will provide further insights into inflation trends and consumer spending strength. Powell's testimony is also expected to offer clues on the Federal Reserve’s rate outlook, with markets closely watching for any signals on future monetary policy moves. Volatility could increase as traders assess how these factors might impact corporate profits and economic growth going forward.
