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US stocks rose on Monday, eyeing a bounce back from sharp losses as steelmakers rallied after President Donald Trump said he will impose new tariffs on steel and aluminum imports.
The Dow Jones Industrial Average (^DJI) added 0.2%, after the blue-chip index on Friday booked its worst loss in nearly four weeks. The S&P 500 (^GSPC) rose roughly 0.4%, while the tech-heavy Nasdaq Composite (^IXIC) popped 0.9%.
Investors are weighing Trump’s pledge on Sunday to introduce additional 25% tariffs on steel and aluminum from all countries, with the official announcement expected on Monday.
The new metals tariffs are likely to benefit US steel companies, whose stock jumped. Shares in Cleveland-Cliffs (CLF) surged over 14%, while Nucor (NUE) rose nearly 7%, US Steel (X) put on 3%, as questions remain about a proposed Nippon Steel buyout. Aluminum producer Alcoa’s (AA) stock also gained.
The move marks another escalation in Trump’s fast-moving policy overhaul and in the odds of a trade war. Major US suppliers Canada and Mexico — already threatened with tariff hikes, currently on pause — face significant impact.
Markets were already bracing for reciprocal tariffs, which Trump said will be announced on Tuesday or Wednesday, with immediate effect. The tariffs will apply to all trading partners and will match the duties levied on US products by each country.
But the gains for US stocks on Monday suggests that investors are getting used to Trump’s trade salvos. Many now see the announcements as a negotiation tactic only, some on Wall Street say.
That said, markets are concerned the growing list of tariff hikes could drive up inflation, likely to stall interest-rate cuts. The January consumer price index reading due on Wednesday will be closely watched for clues, alongside the week’s updates on retail sales.
On the corporate front, 78 S&P 500 companies are set to report earnings this week. McDonald’s (MCD) shares rose after same-store sales grew, beating expectations. Coca-Cola (KO), Super Micro Computer (SMCI), and Airbnb (ABNB) are set to follow this week.
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GameStop shares surge after Ryan Cohen takes a picture with Michael Saylor
The headline is the whole story, give or take.
At midnight Saturday, this post on X emerged:
As Sherwood’s Luke Kawa notes: “Saylor runs Strategy (formerly MicroStrategy), the largest corporate holder of bitcoin. The warm market response to Cohen’s tweet suggests that traders are hoping that Cohen uses some of GameStop’s $4.6 billion in cash and cash-like securities to take a page from Saylor’s playbook. (That playbook has one rule: buy bitcoin).”
Here’s GME this morning, up as much as 7% about 30 minutes into the trading session:
Back in December 2023, GameStop’s board gave Cohen the authority to use the company’s capital to make investments, essentially laying the groundwork for GameStop to be turned into a holding company similar to the Daily Journal (DJCO) company formerly chaired by the late Charlie Munger, or, more grandiosely, Berkshire Hathaway (BRK-B, BRK-A).
Saylor’s Strategy, as Kawa notes, last week formally changed its branding and corporate goals around serving as a bitcoin holding company. (The company also has a small software business on the side.)
Longtime analyst Jeff Macke told Yahoo Finance last year he thinks GameStop should follow the same path.
And you know what they say about pictures.
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Gold rallies past $2,900 per ounce amid tariff threats
Gold surged on Monday to trade past $2,900 for the first time as President Trump’s latest tariff threats spurred buying of the safe-haven asset.
Gold futures (GC=F) climbed more than 1.4% to around $2,930 after hitting a series of all-time highs in the past week.
Over the weekend, Trump said that he will introduce 25% tariffs on all imports of steel and aluminum into the US from all countries, on top of existing duties.
He also said Friday he plans to announce retaliatory tariffs this week to match the levies that countries impose on US goods. The latest policy shifts follow 10% tariffs on certain Chinese products, whic went into effect on Tuesday.
Wall Street analysts have stayed bullish on gold amid the growing tariff threats.
“We continue to see gold as an effective portfolio hedge and diversifier, and believe an allocation of around 5% within a USD balanced portfolio is optimal,” Solita Marcelli, chief investment officer for the Americas at UBS Global Wealth Management, wrote in a Monday note.
Gold is up almost 10% this year so far, following a 27% rally in 2024.
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Stocks open higher as Trump tariffs lift steel stocks
US stocks opened higher on Monday with Industrials getting a lift as investors anticipate US tariffs on steel and aluminum imports will be announced soon.
The Dow Jones Industrial Average (^DJI) added 0.6%, after the blue-chip index on Friday booked its worst loss in nearly four weeks. The S&P 500 (^GSPC) rose roughly 0.5%, while the tech-heavy Nasdaq Composite (^IXIC) popped 0.7%.
On Sunday, President Donald Trump said he will impose new tariffs on steel and aluminum imports, with an announcement expected on Monday. Also, investors expect Trump to announce a retaliatory tariff plan this week.
Trade tensions have prompted investors to flock to safe-haven assets like gold. The precious metal gained more than 1% on Monday, to trade above $2,900 per ounce for the first time on record.
The year-to-date gain for gold is almost 10%, following a 27% rally in 2024.
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