Dow Jones Futures Rise Despite Trump's Tariff Threat

Dow Jones futures rose Monday evening, along with S&P 500 futures and Nasdaq futures, as President Donald Trump signaled plans to impose tariffs on Canada and Mexico. The stock market rally is looking strong, with the Nasdaq and S&P 500 above their 50-day moving averages and many leaders flashing buy signals. The video embedded in the article analyzes the market action in depth and reviews Viking stock, ServiceNow, Amazon.com, and much more.



President Trump said in his inaugural address that he's declaring national emergencies on energy and the southern border. He also said he would revoke the EV mandate, alluding to fuel-economy rules that encourage electric vehicles. However, he refrained from imposing new tariffs, after previously threatening big day one hikes on China, Canada, and Mexico. Instead, he wants to study the issue initially. But he made it clear that he does plan to hike tariffs.

The Dow Jones Industrial Average closed at a record high on Tuesday, achieving the milestone less than 24 hours after a tariff pledge from President-elect Donald Trump sparked fears of a panic in the stock market. The S&P 500 also closed at a record high, surging about 0.55% on Tuesday to end the day at 6,021.63. The Dow ticked up about 0.25% during the day's trading, closing at 44,860.31. The tech-heavy Nasdaq advanced about 0.60%, ending the trading session at 19,174.30.

Trading began on Tuesday hours after Trump announced plans to slap tariffs on Canada, China, and Mexico by executive order on the first day of his administration. Trump late Monday said he would charge Mexico and Canada with a 25% tariff on all products coming into the United States until action is taken by those countries to stem illegal immigration and the overflow of drugs across the border. For China, Trump said that he'd impose an additional 10% tariff on products coming to the U.S.

Economists widely forecast that tariffs of this magnitude would increase prices paid by U.S. shoppers, since importers typically pass along a share of the cost of those higher taxes to consumers. Trump's tariffs would cost the average U.S. household about $2,600 per year, according to an estimate from the Peterson Institute for International Economics.

Despite the potential impact of Trump's tariff threat, the stock market has shown resilience, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all closing at record highs on Tuesday. This suggests that investors are confident in the overall strength of the U.S. economy and corporate earnings, and that they are willing to look past the potential risks associated with increased tariffs.

In conclusion, while President Trump's tariff threat has the potential to impact the U.S. economy and consumer prices, the stock market has shown resilience in the face of this uncertainty. Investors are focusing on the overall strength of the U.S. economy and corporate earnings, and they are willing to look past the potential risks associated with increased tariffs. As the situation continues to evolve, it will be important to monitor the impact of any tariffs on specific industries and the broader economy.