Traders work on the floor of the New York Stock Exchange on Feb. 7, 2025.
NYSE
Stocks rose Monday as major tech names outperformed to start the week, while traders looked past the latest U.S. tariff threat from President Donald Trump.
The Dow Jones Industrial Average traded 171 points higher, or nearly 0.4%, led by a roughly 4% gain in McDonald’s. The S&P 500 gained 0.7%, and the Nasdaq Composite climbed about 1.2%.
The market remains jittery on a mix of inflation worry coupled with concern over how Trump’s plan for tariffs could adversely affect the U.S. economy.
Trump told reporters on Sunday that he’s planning to announce a blanket 25% tariff on all steel and aluminum imports on Monday. Trump did not specify when the tariffs would be imposed and noted that he would also issue retaliatory tariffs on countries that tax U.S. imports. The news comes after Trump’s previously announced duties on China.
Steel and aluminum stocks popped. U.S. Steel and Nucor were up more than 3.5% and 5.5%, respectively. Cleveland-Cliffs climbed more than 17%, and Alcoa traded 3% higher.
Shares of chipmakers also traded higher as sentiment appeared to improve after the late January sell-off in technology stocks, fueled by the concerns around the emergence of Chinese AI startup DeepSeek. Nvidia gained 3.5%, while Broadcom and Micron rose by 4.5% and roughly 4%, respectively. Megacap tech names Alphabet, Amazon and Microsoft were also each higher.
“The volatility around DeepSeek and concerns over tariffs do not derail our positive outlook on risk assets, especially in the U.S. Over the short term, we expect lingering volatility on tariff headlines and potential April bill passage in the U.S., but we keep 6,500 as S&P 500 year-end target,” JPMorgan head of cross asset strategy Fabio Bassi said in a note to clients.
The threat of more tariffs comes ahead of a slew of economic data this week. The January consumer price index report is due out Wednesday at 8:30 a.m. ET, followed by initial weekly jobless claims and the producer price index on Thursday. Federal Reserve Chair Jerome Powell will also speak before Congress on Tuesday morning.
Correction: A previous version misstated when Powell is scheduled to speak.
