Stock indexes close higher, led by tech stocks, despite US-China tariff tensions.

From Nasdaq: 2025-02-04 18:47:21

Stock indexes closed higher on Tuesday, with the S&P 500 up +0.72%, Dow Jones up +0.30%, and Nasdaq 100 up +1.26%. Futures also rose, with S&P futures up +0.68% and Nasdaq futures up +1.26%. Market gains were supported by tech stocks, despite US-China tariff tensions.

US imposed 10% tariffs on Chinese goods, prompting immediate Chinese retaliation with tariffs on US coal, gas, oil, and agriculture equipment. China also declared export control on certain materials and launched an anti-trust probe into Google. Tariffs set for February 10, leaving room for negotiation.

Fed comments leaned hawkish, with concerns over inflation. Earnings results were mixed, with Palantir and Cummins reporting better-than-expected revenue, while Estee Lauder and Merck projected weaker sales. Earnings season continues with tech giants Alphabet, AMD, Qualcomm, and Amazon reporting this week.

T-note yields fell on weaker US economic reports, with JOLTS job openings down -556,000 and factory orders falling -0.9% in Dec. Overseas markets closed higher, with Euro Stoxx 50 up +0.895%, and Japan’s Nikkei up +0.72%. March 10-year T-notes closed higher, with yields falling to 4.517%. Swaps predict a rate cut by the ECB in March.

Stock movers included Palantir, leading gainers with +23% after strong Q4 revenue. Megacap tech stocks like Alphabet, Apple, and Tesla also rose. Losers included Estee Lauder and Merck, down more than -16% and -8% respectively. Market also saw gains from Super Micro Computer, Xylem Inc, and Fox Corp.



Read more at Nasdaq: Stocks Settle High on Strength in Megacap Technology Stocks