Stocks in the United States rose today, although trading was volatile. Investors assessed the latest earnings reports, statistical data, and reports on changes in US trade policy.
The Dow Jones index rose 300.03 points, or 0.75 percent, to 40,527.62 points. The broader Standard & Poor’s 500 index rose 32.08 points, or 0.58 percent, to 5,560.83 points. The Nasdaq technology market index gained 95.19 points, or 0.55 percent, to 17,461.32 points.
Trade Developments and Tariff Relief for Automakers
US Treasury Secretary Scott Bessent today signaled progress in trade agreement negotiations with other countries, including Japan and India. Commerce Secretary Howard Lutnick then confirmed that US President Donald Trump will sign an order today granting US-based automakers relief from some tariffs on cars and auto parts to give them time to bring suppliers back to the US.
However, carmakers’ shares reacted little to the tariff relief. General Motors shares fell as the company lowered its earnings forecast for this year. Strong earnings reports today helped shares of Honeywell, Sherwin-Williams, and Coca-Cola rise. UPS shares weakened in response to news that the company would cut 20,000 jobs. Wells Fargo shares, on the other hand, rose on the announcement of a share buyback program worth up to $40 billion.
Mixed Economic Data and Key Reports Ahead
Statistical data was rather mixed. The US trade deficit in goods rose to a record high in March as companies increased imports ahead of the introduction of tariffs. Consumer sentiment in the US then fell to its lowest level since May 2020 in April. A report on job vacancies indicated that the labor market is relatively stable.
A number of statistics will be released this week, culminating in Friday’s unemployment report. Other companies will also publish their results, including several of the so-called Big Seven, such as Apple, Microsoft, and Meta Platforms. However, investors are likely to focus mainly on signs of the impact of tariffs on earnings, Reuters wrote.
Dollar Strengthens Amid Trade Policy Optimism
The dollar strengthened on foreign exchange markets today. It was helped by reports that US President Donald Trump’s administration will ease the impact of car tariffs on local car manufacturers. However, analysts said that prospects for further tariff agreements with some trading partners also had an impact.
The dollar index, which measures the value of the dollar against a basket of six leading world currencies, rose 0.2 percent to 99.23 points. The euro weakened against the dollar by 0.3 percent to USD 1.1382. The dollar strengthened against the yen by 0.2 percent to JPY 142.31. The euro fell against the yen by 0.2 percent to JPY 161.97.
Source: čtk
