Stock Market Today: S&P 500 and Dow Reach New High On Trump’s Tariff Policy

Stock Market Today, US stocks dismissed President-elect Donald Trump's warning about potential new tariffs on China, Canada, and Mexico, with two major indexes reaching new record highs.

S&P 500 and Nasdaq Hit Record Highs Despite Trump’s Tariff Threat

The S&P 500 (^GSPC) climbed nearly 0.6% to achieve a record closing high, while the tech-heavy Nasdaq Composite (^IXIC) also rose about 0.6%. The Dow Jones Industrial Average (^DJI) overcame earlier losses to end the day up around 0.3%, marking another back-to-back record.

Throughout much of the day, the index faced pressure due to a significant drop in drugmaker Amgen (AMGN), which fell as much as 12% following disappointing weight-loss data. However, shares recovered some losses by the session's end, closing down approximately 5%.

Markets were initially unsettled by Trump’s late Monday announcement of plans to impose substantial tariffs on the US's largest trading partners on his first day in office. His remarks heightened fears of a trade war and dampened Wall Street's optimism that Treasury Secretary nominee Scott Bessent would mitigate any drastic actions from the new administration.

Carmaker Stocks Decline Amid Trump's "America First" Initiative

Carmaker stocks, both domestic and international, declined following Trump's "America First" initiative. Nissan (7201.T) and Honda Motor (HMC), which operate plants in Mexico, faced pressure alongside Ford (F), General Motors (GM), and Stellantis (STLA).

In addition to concerns over potential tariffs, investors also analyzed the minutes from the Federal Open Market Committee meeting that concluded on November 7. The minutes indicated that officials favor a gradual approach to interest rate cuts, provided the economy remains robust.

"Participants anticipated that if the data met expectations, with inflation sustainably moving toward 2% and the economy near maximum employment, it would likely be appropriate to gradually shift toward a more neutral policy stance over time," the minutes stated.

Some officials expressed concerns that a resurgence of persistent inflation, coupled with a downturn in the labor market, could necessitate a pause in the central bank's easing cycle.

This context sets the stage for the upcoming October release of the Personal Consumption Expenditures (PCE) index, the Fed's preferred inflation metric, scheduled for Wednesday.

When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice