Trump’s Tariff Delay Stimulates Markets.
US President Donald Trump addresses a televised newscast on the floor of the New York Stock Exchange on January 21, 2025.
Michael Nagle | Bloomberg | Getty Images
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What you need to know today
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Shares of Netflix rose sharply after the company reported fourth-quarter results that beat revenue and profit expectations and surpassed 300 million paid memberships in the quarter. The company will raise the prices of most US plans. It also increases prices in Canada, Portugal and Argentina.
Markets rallied on Trump’s tariff delay.
Shares on Wall Street rose on Tuesday as investors assessed Trump’s comments and first day measures on global trade as a little softer than initially believed. The president stopped short of authorizing new payments on his first day back in the Oval Office, sending the Dow Jones industrial average up more than 500 points, or 1.24 percent. The S&P 500 rose 0.88%, and the Nasdaq Composite rose 0.64%. Asian markets were more mixed, with Japan and South Korea gaining, but Chinese markets were in negative territory.
(PRO) stock market that doesn’t make sense
According to Henry Allen, a macro strategist at Deutsche Bank, the stock market is once again trading near highs, but the investment landscape is full of contradictions that are difficult to balance. While there is some evidence that investors should be more cautious, he pointed to several parts of the market where investors appear to be playing on the best prospects available.
Bottom line
“I always say tariff is the most beautiful word in the dictionary to me,” President Donald Trump said at his inauguration.
Trump’s first day in the Oval Office, however, appears to be an easy one for the quick moves on that front.
25% tariffs on Canada and Mexico as well. 10% tariff on China. For reference, the 47th president threatened 10%-20% and a whopping 60% tariffs on China on the campaign trail.
Investors seem to have taken Trump’s first day well, with key US gauges rising on Tuesday.
“President Trump’s inauguration day policy announcements on tariffs were better than expected,” said Alec Phillips, chief U.S. political economist at Goldman Sachs, in a note to clients. “For now, it’s more of a priority than we expect.”
China, for its part, tried to persuade Trump against the tariffs, saying at the World Economic Forum in Davos that “protectionism will get you nowhere (and) there is no winner in a trade war.”
Ding Chinese President Xi Jinping in 2015 He quoted a speech he gave in 2017: “Following conservation is like locking yourself in a dark room. Wind and rain can be kept outside, but so can light and air.
Tariffs could derail Trump’s case for America’s “golden age” Last year, Morgan Stanley’s chief economist warned that tariffs would reduce US growth “significantly” by 2026.
One might say that with Trump, tariffs are sowing the wind and reaping the storm.
— CNBC’s Alex Haring, Brian Evans, Evelyn Cheng and Li Yingshan contributed to this report.
