S&P 500 and Nasdaq 100: US Stocks Rise as Traders Look Past Tariff Threat

Stocks Gain as Traders Brush Off Tariff Concerns

Stocks rose Monday, with investors largely shaking off the latest U.S. tariff threat from President Donald Trump while looking ahead to key economic reports. The Dow Jones Industrial Average added 115.59 points, or 0.26%, while the S&P 500 climbed 0.41%. The Nasdaq Composite led with a 0.79% gain.

Market sentiment remained cautious as traders assessed potential economic impacts of new tariffs. Trump announced plans for a 25% tariff on all steel and aluminum imports, with additional retaliatory tariffs against countries taxing U.S. goods. However, details on implementation were unclear, and the market showed resilience ahead of upcoming economic data.

How Are Steel and Aluminum Stocks Reacting?

Steel and aluminum companies saw strong gains on the tariff news. Cleveland-Cliffs surged 15%, while U.S. Steel and Nucor gained 5% and 7%, respectively. Alcoa traded 2% higher. Traders speculated that the potential tariffs could benefit domestic producers by limiting foreign competition.

Energy stocks also saw movement, with BP rising more than 6% following reports that activist investor Elliott Management has taken a stake in the company. The firm is expected to push for changes aimed at improving BP’s financial performance.

Which Stocks Are Making Headlines?

Semiconductor firm Semtech plunged more than 28% after warning that fiscal 2026 net sales from its CopperEdge products are underperforming due to changes in rack architecture. The company stated it does not expect sales to improve over the fiscal year.

Tesla slipped over 1% after Stifel lowered its price target on concerns about mixed fourth-quarter results and pricing challenges. The stock had already fallen more than 3% on Friday.

McDonald’s gained 1.5% despite reporting mixed quarterly results. Earnings per share met expectations at $2.83, but revenue of $6.39 billion missed estimates. However, same-store sales grew 0.4%, outperforming expectations of a 1% decline.

Meta Platforms extended its best-ever winning streak, rising about 1% for its 15th consecutive session of gains. Reports suggest the company is planning a 5% workforce reduction to improve operational efficiency.

What Economic Data Is on the Radar?

Investors are closely watching economic reports set for release this week. The January consumer price index (CPI) is due Wednesday, providing insight into inflation trends. Initial weekly jobless claims and the producer price index (PPI) follow on Thursday.

Federal Reserve Chair Jerome Powell is also scheduled to speak before Congress on Monday. Traders will be looking for any signals on monetary policy, particularly regarding interest rates and inflation expectations.

What’s Next for Markets?

Traders will be closely monitoring inflation data and Powell’s remarks for clues on the Fed’s next moves. Corporate earnings, including reports from Coca-Cola and Shopify, will also play a key role in sentiment.

While tariff concerns may add volatility, analysts at JPMorgan maintain a bullish outlook on risk assets. They continue to project a year-end S&P 500 target of 6,500, though they expect short-term price swings as investors react to tariff developments and legislative updates.

More Information in our Economic Calendar.