Stock market today: Dow, S&P 500, Nasdaq recover as traders assess tariff developments, new jobs data
US stocks closed higher on Tuesday, led by Big Tech, as investors assessed China’s
instant retaliation
to US President Donald Trump’s additional tariffs and the potential risks of a trade war.
Traders also took in fresh jobs data, with job openings declining more than expected in December. Investors are continuing to watch any signs of cooling in the labor market as the Federal Reserve debates future interest rate cuts
in the face of sticky inflation.
The Dow Jones Industrial Average (
^DJI
) gained around 0.3%, while the benchmark S&P 500 (
^GSPC
) rose roughly 0.7%. The tech-heavy Nasdaq Composite (
^IXIC
) jumped nearly 1.4%
to recoup some of Monday’s losses.
Beijing reacted swiftly on Tuesday to Trump’s additional 10% levies on Chinese imports
going into effect at midnight
. China slapped tariffs of 15% on US coal and liquified natural gas, starting Feb. 10, alongside 10% duties on imports of crude oil, farm equipment, and some autos.
The
tit-for-tat measures
raise the risk of an escalation into trade war that would damage both of the world’s top two economies. But some on Wall Street see the Chinese response as showing restraint that opens the door to compromise, as seen in the US
tariff postponement deals
with Mexico and Canada.
Giving more cause for optimism, Trump brought forward talks with China’s President Xi Jinping. He said on Monday they would take place “probably over the next 24 hours,” rather than later in the week. The pair did not speak on Tuesday but US officials said a call could come tomorrow.
The US dollar index (
DX-Y.NYB
) fell, down about 0.9% as worries eased somewhat.
Meanwhile, China
opened an antitrust investigation
into Alphabet’s (
GOOG
,
GOOGL
) Google and added Calvin Klein owner PVH (
PVH
) and biotech company Illumina (
ILMN
) to its “unreliable entities list.”
Outside of China’s investigation, investors also kept a close eye on Alphabet’s earnings, with the company the latest Mag 7 name to report. Shares dropped around 7% in after-hours trading
after revenue for its all-important cloud business disappointed
, while spending came in ahead of expectations.
Other high-profile companies also posted results after the bell. Chipotle stock
fell on a same-store sales miss
while shares of AMD (
AMD
)
rose on strong guidance
that eased concerns about an AI chip slowdown.
Meanwhile, social media giant Snap (
SNAP
) saw its stock jump double digits after the company beat on both the top and bottom lines and guided to first quarter revenue that was ahead of expectations.
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