US stocks rose Monday, as investors digested fresh tariff comments from President Donald Trump ahead of the release of key economic data later this week, News.Az reports citing Investing.
By 09:40 ET (14:40 GMT), the Dow Jones Industrial Average rose 125 points, or 0.3%, the S&P 500 index gained 25 points, or 0.4%, and the NASDAQ Composite climbed 160 points, or 0.8%.
Trump announces 25% tariffs on steel, aluminum
Trump on Sunday said he will announce 25% tariffs on all steel and aluminum imports to the US on Monday, just days after his 10% tariffs on China took effect.
The tariffs will be in addition to already existing duties on the metal imports, which Trump had imposed during his first term and were retained by the Biden administration, albeit at a less severe scale.
The move stands to impact imports from Canada, Brazil, and Mexico the most, given that the three are the biggest steel exporters to the US.
Still, investors were hoping that Trump would offer some relief to Mexico and Canada, given that he had last week postponed plans to impose 25% tariffs on the two, given their major role in the US supply chain.
Trump had offered tariff exemption quotas to several US allies during his previous term.
Key CPI release due this week
On the economic data slate, the focus this week is squarely on key US consumer inflation data for January, due on Wednesday.
The gauge is projected to show that headline consumer price growth cooled on a month-on-month basis in January and equaled December's annualized pace.
Analysts and Federal Reserve officials have warned that Trump’s tariffs - which will be borne by US importers - could also underpin inflation in the coming months.
Federal Reserve Chair Jerome Powell heads to Capitol Hill this week, testifying before the Senate Banking Committee on Tuesday, and to the House Financial Services panel the following day.
This will be the first time he has answered lawmakers’ questions since July.
McDonald's helped by international sales
In corporate news, McDonald’s (NYSE:MCD) stock over 3% after the burger giant’s comparable sales topped estimates in the fourth quarter, with its international licensed markets business was boosted by strength in the Middle East and Japan.
Elsewhere, the share prices of United States Steel Corporation (NYSE:X), Nucor (NYSE:NUE) and Cleveland-Cliffs NYSE:CLF) all soared in the wake of the report of tariffs on steel and aluminum imports.
BP (NYSE:BP) ADRs climbed over 6% after Reuters initially reported over the weekend that activist investor Elliott Investment Management has acquired a stake in the energy giant.
Elliott is pushing for changes at the British oil major to boost shareholder value, Bloomberg said in a separate report on Saturday, describing the investment as “significant.”
The activist investor believes BP is undervalued, with a market capitalization of approximately £69 billion ($85.62 billion), compared to Shell’s £161 billion valuation.
Lyft (NASDAQ:LYFT) shares jumped 5% after a report from TechCrunch said the ride-hailing company plans to introduce fully autonomous robotaxis powered by Mobileye in Dallas as soon as 2026, with expansion to additional markets to follow.
Crude rebounds
Oil prices rose Monday, bouncing after three consecutive weekly declines despite President Trump's new tariff announcement on all steel and aluminum imports.
By 09:40 ET, the US crude futures (WTI) gained 1.3% to $71.94 a barrel, while the Brent contract rose 1.2% to $75.55 a barrel.
Both contracts lost nearly 2% last week after a sharp jump in US crude stockpiles, as well as concerns about a global trade war.
The resulting uncertainty and potential tightening of global supply are contributing to the current rise in oil prices.
