Stocks rallied as tariff threats eased, bond yields fell, T-notes rose

From Nasdaq: 2025-01-21 19:37:45

Stocks closed higher on Tuesday, with the S&P 500, Dow Jones, and Nasdaq all posting gains. This rally came as concerns over Trump’s tariff threats eased, although plans for tariffs on Canadian and Mexican goods remain. Falling inflation expectations boosted T-note prices, while Walgreens and Apple saw declines due to legal issues and sales data. Earnings season is in full swing, with S&P 500 earnings expected to grow 7.5% y/y in Q4.

Interest rates saw T-notes rallying to a 2-1/2 week high as Trump’s tariff policies calmed inflation concerns. European government bond yields also fell, with a notable rise in Eurozone new car registrations. The ECB is expected to lower interest rates at upcoming meetings, with swaps indicating a 99% probability of a -25 bp rate cut at the January 30 meeting.

In US stock movers, Vistra Corp, Oracle, and 3M Co led gainers, while Apple, Walgreens, and Teradyne saw losses. Chip stocks showed strength, with companies like Micron, ARM Holdings, and Nvidia posting gains. Energy producers like Devon Energy and Chevron fell as WTI crude prices declined.

Earnings reports for January 22, 2025, included companies like Abbott Laboratories, Johnson & Johnson, and Procter & Gamble. The author did not hold positions in the mentioned securities. This information is for informational purposes only.



Read more at Nasdaq: Stocks Rally as Tariffs Delayed and Bond Yields Fall