U.S. stocks are showing significant gains in positive territory this Tuesday afternoon as investors evaluate the potential impact of the Trump administration’s economic policies and anticipated tariff plans.
Market sentiment is bolstered by optimism surrounding prospective interest rate cuts by the Federal Reserve this year, alongside a decrease in Treasury yields. Investors are keenly observing earnings reports and anticipating policy developments from Prime Minister Donald Trump for guidance on market direction.
The recent decline in Treasury yields follows U.S. inflation data released in recent days, sparking renewed optimism regarding future interest rates. Adding to this sentiment, Federal Reserve Governor Christopher Waller mentioned in a CNBC interview that the Federal Reserve might reduce interest rates multiple times this year if inflation decreases as he expects.
On the major indices, the Dow is advancing confidently, while the S&P 500 is also gaining solid ground in positive territory. Meanwhile, the Nasdaq shows a modest increase.
As of early afternoon, the Dow has risen by 413.30 points, or 0.95%, to 43,901.13. The S&P 500 is up by 37.23 points, or 0.62%, at 6,033.89, while the Nasdaq is marginally higher, with a gain of 64.14 points, or 0.33%, at 19,694.34.
Shares of Apple Inc. have declined by approximately 4% due to a series of downgrades stemming from weak iPhone sales and underwhelming performance in its hardware and services sectors. Additionally, Tesla has dropped 2.5%, and PayPal has fallen 1.7%.
Walgreens Boots Alliance is experiencing a nearly 14% plunge due to the Department of Justice's lawsuit against the company. Having previously settled a multibillion-dollar case over opioid prescriptions two years ago, the company now faces allegations of dispensing "millions of unlawful prescriptions." Other significant declines include Merck, Chevron, Morgan Stanley, and Airbnb.
Conversely, 3M shares are enjoying a 4% boost following stronger-than-expected quarterly earnings. General Motors is climbing 5.3%, and Moderna has risen by 5.2%. Companies like 3M, Dollar Tree, Caterpillar, Starbucks, Delta Airlines, and Boeing are seeing gains ranging from 3 to 5%.
Prominent gainers also include Target, Home Depot, Nike, Ford Motor, Abbott, American Express, Amazon, Walmart, American Airlines, Intel, and Walt Disney.
In international markets, Asian stocks ended with mixed results on Tuesday, influenced by U.S. President Donald Trump’s announcement of plans to impose a 25% tariff on imports from Canada and Mexico, with potential tariffs on China contingent on a resolution regarding TikTok’s ownership.
Meanwhile, European stocks closed higher as investors processed the executive orders signed by Trump shortly after commencing his second Presidential term.
