U.S. stock markets closed mixed on Tuesday, with the Dow Jones Industrial Average posting gains, while the Nasdaq Composite slipped after President Trump followed through with his threat to impose tariffs on steel and aluminum imports.
The Dow rose by 0.3%, while the S&P 500 remained unchanged. The Nasdaq dropped 0.4%. On Monday, all three indexes had risen as AI stocks surged and investors seemed to shrug off Trump’s tariff warnings.
Trump Imposes Tariffs on Steel and Aluminum Imports
On Monday night, President Trump enacted new tariffs on steel and aluminum imports, which are set to take effect on March 12. The decision rattled markets as investors absorbed the potential economic impact. American steelmaker stocks had mixed reactions on Tuesday. Cleveland-Cliffs (CLF) saw a drop after a big gain the day before, while Steel Dynamics (STLD) saw an uptick.
Earnings Season: Coca-Cola, DuPont, and Astera Labs Lead the Way
Earnings season continued on Tuesday with Coca-Cola (KO) reporting better-than-expected results, boosting its stock nearly 5%. DuPont (DD) also exceeded expectations, driving its stock up by 7%. On the other hand, AI chipmaker Astera Labs (ALAB) saw its stock fall nearly 11%, despite surpassing earnings estimates.
Tech Stocks: Apple, Meta Perform Well, Tesla Struggles
Big tech stocks experienced mixed results. Apple (AAPL) gained about 2%, following news of a potential partnership with Alibaba (BABA) to introduce AI features in China. Meta (META) inched higher, extending its winning streak to 17 consecutive sessions.
However, Tesla (TSLA) fell more than 6%, while other major tech stocks, including Nvidia (NVDA), Microsoft (MSFT), Alphabet (GOOG), and Amazon (AMZN), all dipped by less than 1%.
Powell Testifies Before Congress
Federal Reserve Chair Jerome Powell began his biannual testimony to Congress on Tuesday. He reiterated that the Federal Reserve is not in a hurry to reduce interest rates, as inflation remains high and the labor market stays strong. Powell will return to Capitol Hill on Wednesday to address the House of Representatives.
Treasury Yields, Bitcoin, and Commodities Respond to Market Events
Treasury yields rose as investors reacted to Trump’s steel tariffs, which some economists believe could push inflation higher. The 10-year Treasury yield, which reflects inflation and Fed policy expectations, climbed to 4.53%.
In other markets, Bitcoin fell to $95,000 after briefly surpassing $98,000. Gold futures pulled back to $2,925 per ounce, after reaching a record high of $2,970 as investors sought safer assets following the tariff announcement. West Texas Intermediate crude oil futures increased for the second consecutive day, rising more than 1% to $73 per barrel.
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