Stocks rise, dollar falls after Trump’s denial of tariff policy – 01/06/2025 at 11:53 p.m.

Stocks rise, dollar falls after Trump’s denial of tariff policy – 01/06/2025 at 11:53 p.m.
Stocks rise, dollar falls after Trump’s denial of tariff policy – 01/06/2025 at 11:53 p.m.

Wall Street, the street where the New York Stock Exchange is located. (Credits: Adobe Stock)

Global stocks rose while the U.S. dollar index fell Monday after President-elect Donald Trump denied a news report that his incoming administration would likely pursue a less aggressive tariff policy than he had previously threatened.

European stocks and currencies rose following a Washington Post report earlier Monday, according to

in which Mr. Trump’s aides are exploring tariff plans that would apply to all countries, but which would only cover certain sectors deemed essential to national or economic security. That would mark a significant departure from Mr. Trump’s campaign promise of higher tariffs.

In a social media post, Mr. Trump called the article erroneous and “another example of

Fake News”.

“I think what this highlights is that it’s going to be an interesting year,” said Matt Orton, chief market strategist at Raymond James in St. Petersburg, Florida. “Additionally, and this is key to my outlook for 2025, there is the idea that we are going to have more volatility events because there is so much uncertainty when it comes to policy , politics, inflation and the path of rates”

The benchmark S&P 500 and Nasdaq ended higher, led by gains in the communications services, technology and materials sectors. The Dow Jones ended lower, dragged down by consumer staples stocks.

The Dow Jones Industrial Average fell 0.06% to 42,706.56, the S&P 500 .SPX rose 0.55% to 5,975.38 and the Nasdaq Composite rose 1.24% to 19,864.98 .

The pan-European stock index ended up 0.94% at 512.37, close to its session high of 513.08.

The MSCI world stocks index rose 1.20% to 857.39. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.68% to 108.22, with the euro up 0.8% at $1,039.

The Canadian dollar strengthened by 0.78% against the US dollar, to $1.43, after the Prime Minister

Justin Trudeau has resigned as leader of the ruling Liberals after nine years in office.

Yields on long-term Treasury securities, including the benchmark 10-year note and 30-year bond, have risen as traders evaluate Trump’s tariff policies. The 10-year yield US10YT=RR rose 1.7 basis points to 4.612%, while the 30-year yield US30YT=RR climbed 1.9 basis points to 4.8337%.

The yield on the 2-year note, which typically moves based on the Federal Reserve’s interest rate forecasts, fell 1.5 basis points to 4.264%.

Oil prices fell in volatile trading. Brent crude futures LCOc1 fell 0.3% to settle at $76.30 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 fell 0.5% to settle at $73.56.

The price of gold lost ground as rising US Treasury yields offset the weakness in the US dollar. Spot gold fell 0.1 percent to $2,636.35 an ounce. US gold futures settled at $2,647.40, down 0.3%.

“We’re in a game where they’re going to continue to use other people’s trial balloons, giving the president the right to opt out if he’s not satisfied with the message,” said Tom Plumb, chief executive and senior portfolio manager of Plumb Funds in Madison, Wisconsin.

“We’re still in a situation where, if you look at the top 11 companies in the S&P 500, they’re expected to see 50% earnings growth

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