U.S. stocks rose on Monday following fresh tariff threats, with the S&P 500 near its all-time high. Trump’s threats to impose tariffs on trading partners were met with approval by investors, leading to market gains.
Equities opened strong after the weekend’s tariff threats, with the S&P 500 up 0.17%, the Dow rising 0.2%, and the Nasdaq gaining 0.27%. Trump threatened the EU, Mexico, and Russia with tariffs, but markets largely ignored the threats.
Deutsche Bank notes that market threats are seen as negotiating tactics. LPL Financial points out that tariffs bring uncertainty, affecting economic growth, inflation, and interest rates. Trade policy cooperation is crucial for continued stock market growth.
Upcoming inflation data releases this week could impact market optimism. Major U.S. banks begin reporting earnings, offering insight into how tariffs affect companies and consumers. Analysts are watching to see if consumer prices will reflect the $100 billion in tariffs collected by the U.S. Treasury.
Bleakley Financial Group’s chief investment officer notes that tariffs may not directly impact consumer prices, but someone in the supply chain is feeling the effects. The ongoing tariff situation is complex and could have far-reaching economic implications.
Read more at Yahoo Finance: Stock markets are rewarding Trump’s new tariff threats with the S&P hovering near its record high