The aftermath of Trump’s announcement last week that the U.S. would impose new tariffs on aluminum and steel has brought clouds over investors’ sentiment. Even though U.S. equities closed higher on Tuesday, investors remained anxious over the proposed tariffs by President Donald Trump.
Increasing resistance to President Donald Trump’s proposed tariffs on metals encouraged risk appetite among investors pushing US stocks into the green as the market opened on Tuesday.
Yesterday, Bloomberg News reported that sources close to Trump were convinced Gary Cohn, Trumps’ chief economic advisor, would leave the administration in the case the tariffs proposed by the president were implemented.
Yesterdays’ choppy session finally ended in positive territory. The Dow Jones 30 ended 9.36 points higher at 24,884 after briefly falling as much as 166 points. At the beginning of the session, the Dow rose 120 points.
The S&P 500 rose 0.3% to 2,728 after falling as much as 0.4%. General Motors, a company that would be adversely affected by the tariffs, saw its shares rise 0.5%. The Nasdaq composite closed 0.6% higher at 7,372 mainly due to the rise of Netflix and Amazon.
Trade War Looms over the Markets
Daily Analysis - 07/03/2018