(Washington) The New York Stock Exchange ended higher on Tuesday, little shaken by the announcements of Donald Trump who promised to introduce increases in customs duties against Mexico, China and Canada, the Dow Jones and the S&P 500 even recording new closing records.
Published at 10:00 a.m.
Updated at 5:06 p.m.
The Dow Jones gained 0.28%, while the NASDAQ index gained 0.63% and the broader S&P 500 index gained 0.57%.
First taken off guard, the American market then calmly digested President-elect Donald Trump’s announcements aimed at imposing customs duties of 25% on products imported into the United States from Canada and Mexico, as well as adding 10 % customs taxes for goods coming from China.
He justified this decision by the need to push these three countries to do more to combat drug flows from their territory to the United States.
“In theory, rising tariffs shouldn’t be good news for stocks, but […] the market chose to see it as a negotiation tactic,” Steve Sosnick of Interactive Brokers noted to AFP.
“The mood is generally positive,” he added, even if he did not necessarily note “aggressive buying” on the part of investors.
“The gains of certain large caps boosted the S&P 500 and the NASDAQ Composite,” Patrick O’Hare of Briefing.com also indicated in a note.
The “Magnificent Seven”, the nickname given to the big names in the technology sector, almost all finished in the green, like Alphabet (+0.70%), Amazon (+3.18%), Nvidia ( +0.66%) or even Apple (+0.94%).
“If these stocks are up, that’s usually enough to lift the market,” Sosnick noted.
Trump’s announcements relating to customs duties, however, weighed down the American automobile sector, with General Motors (-9.03%) at the forefront.
“A large part of their cars are assembled in Mexico and Canada, or contain parts from Mexico, Canada and China,” recalled Mr. Sosnick.
“So it’s not a good thing for them if their supply chain is affected by the tariffs,” he added.
In terms of indicators, investors particularly monitored consumer confidence in the United States, which recorded a further increase in November, in particular due to Americans’ optimism regarding the job market.
On the other hand, sales of new homes fell sharply in October in the United States, largely disappointing market expectations which were expecting a much less marked decline.
Wall Street also kept an eye on the report (minutes) of the American central bank (Fed), published Tuesday, with all officials of the financial institution believing that the reduction in rates should be carried out “gradually”.
On the bond market, the yield on 10-year US government bonds rose to 4.29% compared to 4.27% the day before at closing.
After shining following the explosion of bitcoin in recent weeks, cryptocurrency players followed its fall.
Related News :