The Dow Jones industrial average (^DJI) yields 0.1%, while the reference index S&P 500 rises 0.4%. Meanwhile, the Nasdaq Composite (^ixic), of strong technological component, advances 0.8% after a previous day of losses in the markets.
Beijing reacted quickly on Tuesday to the imposition of an additional 10% in tariffs on Chinese imports, which entered into force at midnight. China responded with 15% tariffs on coal and liquefied natural gas from February 10, in addition to 10% levies on raw oil imports, agricultural equipment and some cars.
Reprisal measures increase the risk of a escalation in the commercial war that would affect the two main economies of the world. However, some analysts on Wall Street interpret China’s response as moderate, which could open the door to a possible agreement, in line with US negotiations to postpone tariffs to Mexico and Canada.
An action shoots almost 30%
A key week of earnings reports is underway, with the reports of Spotify (Spot), PayPal (PyPL), AMD (AMD) and Chipotle (CMG) as outstanding points on Tuesday’s agenda. With less than half of the season, the growth of the profits of the S&P 500 is emerging to overcome the fourth quarter of last year.
Palantir (PLTR) brought encouraging news to Wall Street after Monday closingsince its income forecasts for the first quarter and the full year exceeded expectations. Palantir shares shoot 26.3%.
In the front of the data, a report on employment offers will be published later, preparing the land for the crucial monthly employment report on Friday.
The market reacts to economic policy
The actions arrived after a volatile negotiation session, in which the main indices made an impressive turn after an initial global sale. At its lowest session on Monday, the 30 shares dow fell more than 600 points, or almost 1.5%, after Trump signed an order on the weekend to impose 25% tariffs on Mexico and Canada, in addition to 10% about China.
However, the feeling of investors changed Monday afternoon, after Trump said that the Mexican products tax would be suspended.
Finally, the main indices ended Monday far from their minimums of the day, but still registered losses. The 30 shares dow fell 0.28%, while the S&P 500 lost 0.76%. The Nasdaq Composite dropped 1.2%.
Source: Ambito
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