Newly sworn-in President Donald Trump takes part in a signing ceremony in the President’s Room following the 60th inaugural ceremony on Jan. 20, 2025, at the US Capitol in Washington, DC.
Melina Mara | Via Reuters
Stock futures advanced on Tuesday as Donald Trump’s second term as president began with a flurry of executive orders and comments on tariffs targeting goods coming from key trade partners.
Futures tied to the S&P 500 rose 0.3%, while Dow Jones Industrial Average futures climbed 177 points, or 0.4%. Nasdaq-100 futures added 0.4%. Regular trading was closed Monday for the Martin Luther King holiday.
Trump made tariff comments at the White House as he was signing executive orders. He said he was thinking of 25% tariffs on Mexico and Canada on Feb. 1 because of their border policies. Trump also mentioned China some during the discussion with the press, but did not specify any plans for tariffs. The president said maybe the U.S. could put tariffs on China if the country doesn’t approve a TikTok deal.
One positive note in the market’s view, Trump said he was not ready to impose universal tariffs yet.
“Asset prices in 2025 will be significantly driven by the path of Trump’s policies. Uncertainty is likely to persist and be a feature of Trump’s presidency,” said Robert Sockin, senior global economist at Citi, in a note.
“Trump seems to thrive in a world of ambiguity in which his political opponents and international counterparts are unclear regarding his next move,” he added. “Investors who stay nimble but also stay focused on underlying strong economic fundamentals are likely to reap benefits.”
Elsewhere, Trump declared a national energy emergency to increase fossil fuel production.
In his inaugural address, the president labeled his return to the White House as the beginning of a period of growth and success for the country, while largely condemning the Biden Administration.
Wall Street will be focused on Trump following through on the pro-business proclamations he made throughout his campaign, most notably his calls for looser regulations that helped lift banking banking stocks following his election win in November. Other components of the so-called Trump trade, including small caps, oil stocks and bitcoin, will be hypersensitive to where his administration goes from here.
The stock market is coming off its best week since the period that followed Trump’s election. The S&P 500 gained 2.9% last week, its best week since the period ended Nov. 8. The Dow jumped 3.7% and the Nasdaq Composite gained 2.5% last week, respectively.
D.R. Horton shares pop on earnings
Homebuilder D.R. Horton climbed in Tuesday’s premarket after earnings topped Wall Street expectations.
The company earned $2.61 per share on $7.61 billion in revenue for the first fiscal quarter. Analysts polled by LSEG were expecting just $2.36 a share and $7.08 billion, respectively.
Shares have jumped more than 5% since 2025 began, reversing course after sliding 8% in the prior year.
— Alex Harring
China vice premier warns: Trade war has no winners
Chinese Vice Premier Ding Xuexiang warned Tuesday that trade wars end with “no winners” after President Donald Trump took office for a second term — raising the possibility of increased trade tensions between the world’s two largest economies.
Ding’s comments came during a speech at the World Economic Forum in Davos, Switzerland.
— Evelyn Cheng
Stock futures give up some ground after President Trump’s tariff comments
Stock futures gave up earlier gains on Monday night, after President Trump said he was considering implementing a 25% tariff on Mexico and Canada beginning on Feb.1. He added that he would also place tariffs on China if Beijing refuses to approve a deal to sell TikTok.
— Brian Evans
Jefferies downgrades Apple
Jefferies downgraded Apple to underperform, a rare negative rating for the Big Tech name on Wall Street.
The firm also warned that revenue out of the company can disappoint investors. CNBC Pro subscribers can click here for the full story.
— Alex Harring
Costco union members vote to authorize strike
A union representing more than 18,000 Costco employees nationwide approved a strike if a contract agreement with the retailer cannot be reached.
Costco Teamsters said 85% of members voted to approve a work stoppage. Union members held practice pickets last week.
“Costco’s greedy executives have less than two weeks to do the right thing,” Sean O’Brien, general president of Teamsters, said in a statement. “If they refuse, they’ll have no one to blame but themselves when our members go on strike.”
The union said it will have one final week of negotiations with the retailer. The current contract expires Jan. 31.
— Alex Harring
Stock futures rise
U.S. stock futures were higher on Monday, following the inauguration of President Donald Trump.
Futures tied to the S&P 500 advanced 0.4%, alongside Nasdaq 100 futures. Dow Jones Industrial Average futures popped 187 points, or 0.4%.
— Brian Evans