US stocks closed mixed on Tuesday, with investors worrying about President Trump’s tariff plans and looming inflation data affecting markets. The Dow Jones Industrial Average (^DJI) edged around 0.3% higher, while the benchmark S&P 500 (^GSPC) closed just above the flatline. The tech-heavy Nasdaq Composite (^IXIC) pulled back about 0.4%. At one point during the afternoon, all three were in the red.
Donald Trump promises to reveal his plan for universal like-for-like tariffs this week, which could have a crucial affect on the stock market. On Monday, Trump signed an executive order imposing 25% tariffs on all steel and aluminum imports starting March 12. These tariffs certainly threw a wrench into many investors’ plans.
Stock of the Day: Intel (INTC)
One of the top gainers Tuesday was Intel (INTC). The stock jumped 6.5% Tuesday after US Vice President JD Vance said during an address at the AI Summit in Paris that President Trump will “ensure” AI is built with domestically-produced semiconductors. “To safeguard America’s advantage, the Trump administration will ensure that the most powerful AI systems are built in the U.S. with American designed and manufactured chips,” Vance said. AI stocks also climbed a bit after the news.
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Furthermore, stock investors are eagerly waiting January’s Consumer Price Index reading on Wednesday. With inflation continuing to loom and rising in December, the next report will set the course for the nation’s inflation battle in 2025. The report, set for release at 8:30 a.m. ET on Wednesday is expected to show headline inflation of 2.9%, matching the annual gain seen in December. Consumer prices are expected to have risen 0.3% over the prior month, a slight deceleration from the 0.4% monthly increase seen in December.
The Fed doesn’t expect to execute more than 4 rate cuts in 2025, and will take their time in making the cuts. Fed Chair Jerome Powell today spoke at a Senate hearing explaining that the battle against inflation remains ongoing, but is slowing down.