S&P 500, Nasdaq lead rally as Nvidia jumps, markets brush off Trump tariff threats

The main averages rebounded on Monday led by tech and power shares as traders awaited an official announcement from President Trump over new tariffs on metal and aluminum imports.

The Dow Jones Industrial Common (^DJI) gained practically 0.4% whereas the S&P 500 (^GSPC) rallied about 0.6%. In the meantime the Nasdaq Composite (^IXIC) rallied about 1% as most semiconductor shares, together with AI chip big Nvidia (NVDA) surged.

The markets dismissed President Trump’s newest tariff threats. Over the weekend the President mentioned he would introduce extra 25% tariffs on metal and aluminum imports.

Metal-related shares jumped, together with Cleveland-Cliffs (CLF), Nucor (NUE) and US Metal (X).

In the meantime Power (XLE) shares outperformed as oil costs rebounded from a three-week decline. Tech (XLK) shares additionally outperformed.

Tremendous Micro Pc (SMCI)

Shares of the server maker soared 15% on Monday forward of a vital enterprise replace scheduled for Tuesday. This comes amid heightened investor scrutiny following current monetary accounting challenges. The corporate should file its overdue monetary statements by February twenty fifth or face a possible delisting.

monday.com (MNDY)

Shares of cloud platform monday.com surged by over 25% after the corporate posted fourth quarter earnings that blew previous Wall Avenue income and revenue expectations. The agency’s executives signaled plans to accentuate synthetic intelligence efforts in 2025 on the heels of the report.

Cleveland-Cliffs (CLF)

Shares of Cleveland-Cliffs (CLF) soared 15% after President Trump mentioned over the weekend that he would impose a 25% tariff on all metal and aluminum imports into the US. Friends US Metal (X), Alcoa (AA), and Nucor (NUE) all gained throughout Monday’s session.

Yahoo Finance’s Jennifer Schonberger reviews:

Billionaire Elon Musk instructed in a sequence of social media posts this previous weekend that the Federal Reserve ought to endure nearer scrutiny, making the feedback simply days earlier than Fed Chair Jerome Powell is scheduled to testify on Capitol Hill.

Musk — who’s already roiling Washington as head of the Division of Authorities Effectivity (DOGE) — mentioned in a single submit on X Sunday that “All features of the federal government have to be totally clear and accountable to the folks. No exceptions, together with, if not particularly, the Federal Reserve.”

It got here in response to a submit from one other X consumer who argued that the Fed has by no means had a full audit or a full disclosure of financial coverage choices.

Learn extra right here.

Yahoo Finance’s Brian Sozzi reviews:

The Magnificent Seven has was the Stupendous One as AI spending fears weigh on sentiment.

The normally reliably scorching Magnificent Seven commerce of Meta (META), Amazon (AMZN), Google (GOOG), Apple (AAPL), Nvidia (NVDA), Microsoft (MSFT), and Tesla (TSLA) has underwhelmed multiple month into 2025. Solely one of many big-cap tech parts — Meta — has notched double-digit positive aspects out of the field.

In actual fact, shares of Meta have risen for 15 straight periods via Monday — bringing its year-to-date advance to a stellar (or stupendous…) 20%.

Amazon is the one different Magazine Seven part to be up on the 12 months to the tune of 5.9%, barely forward of the three.4% enhance for the S&P 500 (^GSPC). Alphabet, Apple, Nvidia, Microsoft, and Tesla are all down 12 months to this point, with a median drop of three% primarily based on Yahoo Finance’s calculations.

Learn extra right here.

Yahoo Finance’s Pras Subramanian reviews:

Rivian (RIVN) introduced on Monday that it’s opening up orders for its Rivian Industrial van past its preliminary launch companions, probably making a profitable enterprise for the pure-play EV maker.

Rivian’s industrial van runs on the identical platform as the present electrical supply van that Rivian produces for Amazon (AMZN). Although Rivian initially had an unique association to supply 100,000 vans for the retail big, Amazon is presently solely utilizing 20,000 vans.

Rivian mentioned that after the top of its exclusivity interval with Amazon, it had been testing its industrial vans with giant fleet operators, together with AT&T, and was now able to open up orders to different corporations using fleets.

Rivian shares have been up over 3% in noon commerce on Monday.

Oil futures rallied on Monday, serving to elevate power shares.

The S&P 500 Power Sector (XLE) was the most important gainer, outperforming Tech (XLK) and Client Discretionary (XLY).

On Monday the inventory market shrugged off escalating commerce tensions, with all three main averages rallying.

In the meantime, West Texas Intermediate crude (CL=F) and Brent futures (BZ=F) gained greater than 1%, bouncing again from a three-week decline.

“The sharply increased US inventory market can also be bringing consumers again from the sidelines,” mentioned Dennis Kissler, senior vice chairman of buying and selling for BOK Monetary Securities.

US customers’ long-term inflation expectations moved increased in January as President Trump teased extra tariff bulletins over the weekend.

In line with the most recent survey launched by the New York Federal Reserve Monday morning, customers see inflation regular at 3% a 12 months from now, whereas the three-year interval additionally got here in unchanged at 3%. 5-year inflation expectations, nevertheless, ticked as much as 3% from the prior 2.7% studying — the very best since Might 2024.

Yr-ahead commodity worth expectations rose throughout the board, with the outlook for gasoline costs rising to 2.6% in January whereas prices for meals, medical care, faculty, and lease all elevated to 4.6%, 6.8%, 5.9%, and 6.0%, respectively.

The outcomes comply with final week’s College of Michigan shopper sentiment survey, which confirmed headline sentiment decline to its lowest degree in seven months. Pessimism over the inflation outlook drove down February’s preliminary learn and one-year inflation expectations jumped to 4.3% from 3.3% final month.

Exterior of inflation, Monday’s survey additionally pointed to some uncertainty throughout the US job market, regardless of Friday’s scorching January payrolls report.

The imply perceived likelihood of dropping one’s job within the subsequent 12 months elevated by 2.3 proportion factors to 14.2% in January. In the meantime, the imply perceived likelihood of discovering a job within the subsequent three months additionally elevated to 51.5%, a rise of 1.4 proportion factors.

Yahoo Finance’s Brian Sozzi reviews:

Markets could also be attempting to determine the impression of a full-on Trump commerce warfare with Europe, China, Canada, and Mexico.

However one outstanding economist says the eventual end result may very well be singular.

Apollo International Administration (APO) chief economist Torsten Sløk advised me on Yahoo Finance’s Opening Bid {that a} full-scale US commerce warfare in opposition to the world would ship a “stagflationary shock” to the US economic system. Stagflation is outlined as a interval of gradual progress and excessive inflation. It is a tariff-related warning additionally not too long ago issued by billionaire investor Ray Dalio. (Disclosure: Yahoo Finance is owned by Apollo International Administration.)

“So the short-run results of a commerce warfare [are] definitely painful. Even this may be small numbers, but it surely’s definitely one thing that is unfavourable,” Sløk mentioned on Monday (see video above; hear beneath).

Learn extra right here.

Yahoo Finance’s Ben Werschkul reviews:

Donald Trump’s fast reorientation of the US commerce panorama has a busy week forward, and he might make strikes on three simultaneous fronts as importers, CEOs, and international leaders wrestle to regulate.

The uncertainty is being heightened as essential particulars stay unclear, however with the president promising “extremely detailed” bulletins within the days forward.

Up first this week is a newly introduced plan for 25% duties on metal and aluminum, which Trump advised reporters on Sunday could be introduced on Monday.

The president is ready to signal new government orders at 1 p.m. ET. He mentioned his tariff plans will apply to all imports, but it surely stays to be seen how these new duties overlap with current steel tariffs.

Learn extra right here.

The headline is the entire story, give or take.

At midnight Saturday, this submit on X emerged:

As Sherwood’s Luke Kawa notes: “Saylor runs Technique (previously MicroStrategy), the biggest company holder of bitcoin. The nice and cozy market response to Cohen’s tweet means that merchants are hoping that Cohen makes use of a few of GameStop’s $4.6 billion in money and cash-like securities to take a web page from Saylor’s playbook. (That playbook has one rule: purchase bitcoin).”

Here is GameStop inventory (GME) this morning, up as a lot as 7% about half-hour into the buying and selling session:

Again in December 2023, GameStop’s board gave Cohen the authority to make use of the corporate’s capital to make investments, basically laying the groundwork for GameStop to be was a holding firm much like the Every day Journal (DJCO) firm previously chaired by the late Charlie Munger, or, extra grandiosely, Berkshire Hathaway (BRK-B, BRK-A).

Saylor’s Technique, as Kawa notes, final week formally modified its branding and company objectives round serving as a bitcoin holding firm. (The corporate additionally has a small software program enterprise on the facet.)

Longtime analyst Jeff Macke advised Yahoo Finance final 12 months he thinks GameStop ought to comply with the identical path.

And what they are saying about footage.

Gold surged on Monday to commerce previous $2,900 to hit new information as President Trump’s newest tariff threats spurred the shopping for of the safe-haven asset.

Gold futures (GC=F) climbed greater than 1.4% to round $2,930 after hitting a sequence of all-time highs up to now week.

Over the weekend, Trump mentioned that he’ll introduce 25% tariffs on all imports of metal and aluminum into the US from all nations, on high of current duties.

He additionally mentioned Friday he plans to announce retaliatory tariffs this week to match the levies that nations impose on US items. The most recent coverage shifts comply with 10% tariffs on sure Chinese language merchandise, which went into impact on Tuesday.

Wall Avenue analysts have stayed bullish on gold amid the rising tariff threats.

“We proceed to see gold as an efficient portfolio hedge and diversifier, and imagine an allocation of round 5% inside a USD balanced portfolio is perfect,” Solita Marcelli, chief funding officer for the Americas at UBS International Wealth Administration, wrote in a Monday word.

Gold is up nearly 10% this 12 months to date, following a 27% rally in 2024.

US shares opened increased on Monday with Industrials getting a elevate as traders anticipate US tariffs on metal and aluminum imports might be introduced quickly.

The Dow Jones Industrial Common (^DJI) added 0.6% after the blue-chip index on Friday booked its worst loss in practically 4 weeks. The S&P 500 (^GSPC) rose roughly 0.5%, whereas the tech-heavy Nasdaq Composite (^IXIC) popped 0.7%.

On Sunday, President Donald Trump mentioned he’ll impose new tariffs on metal and aluminum imports, with an announcement anticipated on Monday. Additionally, traders count on Trump to announce a retaliatory tariff plan this week.

Commerce tensions have prompted traders to flock to safe-haven belongings like gold. The valuable steel gained greater than 1% on Monday, to commerce above $2,900 per ounce for the primary time on document.

The year-to-date achieve for gold is nearly 10%, following a 27% rally in 2024.