US stocks climb on Trump AI support, trade outlook
Rebecca Noble/Getty Images
- Indexes jumped during the first trading session of Trump's presidency.
- The Dow soared over 500 points amid Trump's softer-than-feared tariff order.
- The president is expected to announce a joint investment project on Tuesday.
Stocks rallied Tuesday as the president's first days bolstered risk appetite among investors.
Donald Trump's softer-than-feared tariff policy and the president's expected support for an artificial intelligence investment deal boosted the broader market. The Dow Jones Industrial Average jumped over 500 points, while the S&P 500 and Nasdaq Composite also rose. Small-caps gained sharply, with the Russell 2000 up nearly 2%.
Bond yields tumbled. The 10-year US Treasury yield fell four basis points to 4.564%.
Though Trump made universal tariffs a linchpin of his trade policy plans, the lack of immediate implementation relieved nervous investors. Trump said he would consider 25% tariffs on goods from Canada and Mexico by February 1st, but withheld on broader announcements.
Instead, the president issued a memo ordering some departments to study the impact of trade and currency practices by April. New tariff policy adjustments could start after that date.
Trump is also expected to announce a joint investment with OpenAI, Oracle, and Softbank. The project would pour billions into US AI infrastructure. The news sent technology mega-caps rallying, such as Nvidia, Amazon, and Alphabet.
Stocks also rose Tuesday on general bullishness amid expectations for a pro-business agenda under Trump. On his first day, the president declared a national energy emergency to promote US fossil fuel production and established a regulatory freeze.
Here's where US indexes stood at the 4:00 p.m. closing bell on Tuesday:
- S&P 500: 6,049.24, up 0.88%
- Dow Jones Industrial Average: 44,025.81, up 1.24% (+537.98 points)
- Nasdaq composite: 19,756.78, up 0.64%
Here's what else is going on:
- Trump is a crypto billionaire. But he probably won't want to cash out anytime soon.
- The SEC launched a crypto task force on Trump's 2nd day in office.
- 5 things to know about Trump's meme-coin frenzy.
- A Top 1% investor sounded the alarm on stock-market bubble set to unravel.
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil dropped 2.30% to $76.09 a barrel. Brent crude, the international benchmark, slid 0.84%, to $79.47 a barrel.
- Gold inched higher to $2,754 an ounce
- The 10-year Treasury yield slumped four basis points to 4.564%.
- Bitcoin gained 2.51%, climbing to $106,570.