Stock Market Reverses Course after Tariff Fears Lessen
The US stock market indices all showed signs of improvement as Tuesday trading closed off, with the Dow Jones reversing from a drop to gaining 0.30%.
The top three US stock market indices were all improved on Tuesday evening before trading finished. The S&P 500 gained 0.72%, while the Nasdaq Composite climbed 1.35%. The Dow Jones climbed as well and pointed to diminished fears over President Donald Trump’s tariff action against Canada, Mexico, and China.
The proposed tariffs were suspended in the cases of Mexico and Canada as the two governments acceded to US demands to strengthen border patrols. This move is designed to prevent the free flow of illegal immigrants, guns, and illegal drugs like fentanyl from coming into the US.
China pushed back against the traffic with tariffs of their own, which caused the market to drop early Tuesday. The market has made some recovery, though, and could continue to push upward as trading begins Wednesday.
Tech Stocks Tumble
A couple of major stocks took a dive this week, most notably Alphabet (GOOG), which dropped by almost 7% before trading opened Wednesday. The company reported its 4th quarter earnings, which were lower than expected. Apple announced plans to invest $75 billion in capital expenditures throughout 2025, which could hurt their profits for the next quarter.
Microsoft (MSFT) was also down, but just by 0.42%, and this can be traced back to their quarterly earnings report as well. They released that report on January 29th and immediately saw a 6% stock price drop as the company failed to realize revenue increases as high as shareholders were expecting.
Disney (DIS) stock is down too, by 0.61%, and it may fall further. The company reported that their Disney+ subscriptions have declined for the quarter and may decline further next quarter. Investors may want to wait for a further drop before buying this stock, which is expected to recover later on in 2025.
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