As Donald Trump embarks on his second term as President, significant economic and policy shifts are underway. On the first trading day following Martin Luther King Jr. Day, stock futures saw a substantial rise. The S&P 500 increased by 2.9%, the Dow rose by 3.7%, and the Nasdaq Composite climbed by 2.5%. Meanwhile, Trump's administration has signaled potential tariffs on Canada, Mexico, and China, threatening to reshape economic landscapes with wide-reaching implications.
The potential tariffs could impact the U.S. economy by raising the prices of consumer goods and agricultural products. Trump suggested a 25% tariff on goods from Canada and Mexico as early as February 1, using these measures as leverage in trade negotiations. Additionally, Trump has proposed universal duties on all trading partners and increased levies on China, a strategy he advocated as a candidate.
In parallel to these economic moves, Trump issued a series of executive orders. These include halting the enforcement of a law concerning TikTok for 75 days, which briefly caused the app to go dark in the U.S. before it was restored. Trump is also considering using tariffs to secure a U.S. investor for TikTok.
Moreover, Trump declared a national energy emergency and announced the U.S.'s withdrawal from the Paris climate accords, signaling a shift in energy policy. In another controversial decision, Trump pardoned approximately 1,500 individuals charged in connection with the January 6, 2021 Capitol attack.
While these policy decisions unfold, several key earnings reports are on investors' radars. Companies such as Netflix, United Airlines, Procter & Gamble, Alaska Air, and American Airlines are expected to release their earnings soon, providing further insights into market trends.
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