Major U.S. stock indices open higher on January 21, following U.S. President Trump’s proposed tariffs on Canadian and Mexican goods and the implications. The Dow Jones Industrial Average gained 1% to 43,934.33, and the S&P 500 was up 0.7% to 6,042. The Nasdaq Composite rose just 0.5% to 19,742
Investors feeling optimistic in the face of trade uncertainty help to drive the market’s upward momentum. That sentiment may be being bolstered by expectations for Federal Reserve rate cuts and a more business-friendly environment under a Trump administration, analysts suggested. However, for some sectors, such as manufacturing and consumer goods, potential risks tied to trade disruptions and higher input costs remain a worry.
Interestingly, this performance of the S&P 500 is part of a broad trend of expected earnings recovery and deregulation being key drivers of growth for the year 2025, strategists note. Double-edged, Wall Street’s combined sense of opportunity and challenge reflects geopolitical headwinds looming over corporate America.
This article first appeared on GuruFocus.
