LIVEUpdated 20 mins agoUS stocks rose on Monday, eyeing a bounce back from sharp losses as steelmakers rallied after President Donald Trump said he will impose new tariffs on steel and aluminum imports.The Dow Jones Industrial Average (^DJI) added 0.2%, after the blue-chip index on Friday booked its worst loss in nearly four weeks. The S&P 500 (^GSPC) rose roughly 0.4%, while the tech-heavy Nasdaq Composite (^IXIC) popped 0.9%.Investors are weighing Trump’s pledge on Sunday to introduce additional 25% tariffs on steel and aluminum from all countries, with the official announcement expected on Monday.The new metals tariffs are likely to benefit US steel companies, whose stock jumped. Shares in Cleveland-Cliffs (CLF) surged over 14%, while Nucor (NUE) rose nearly 7%, US Steel (X) put on 3%, as questions remain about a proposed Nippon Steel buyout. Aluminum producer Alcoa’s (AA) stock also gained.The move marks another escalation in Trump’s fast-moving policy overhaul and in the odds of a trade war. Major US suppliers Canada and Mexico — already threatened with tariff hikes, currently on pause — face significant impact.Markets were already bracing for reciprocal tariffs, which Trump said will be announced on Tuesday or Wednesday, with immediate effect. The tariffs will apply to all trading partners and will match the duties levied on US products by each country.But the gains for US stocks on Monday suggests that investors are getting used to Trump’s trade salvos. Many now see the announcements as a negotiation tactic only, some on Wall Street say.That said, markets are concerned the growing list of tariff hikes could drive up inflation, likely to stall interest-rate cuts. The January consumer price index reading due on Wednesday will be closely watched for clues, alongside the week’s updates on retail sales.On the corporate front, 78 S&P 500 companies are set to report earnings this week. McDonald’s (MCD) shares rose after same-store sales grew, beating expectations. Coca-Cola (KO), Super Micro Computer (SMCI), and Airbnb (ABNB) are set to follow this week.LIVE 4 updatesThe headline is the whole story, give or take.At midnight Saturday, this post on X emerged:As Sherwood’s Luke Kawa notes: “Saylor runs Strategy (formerly MicroStrategy), the largest corporate holder of bitcoin. The warm market response to Cohen’s tweet suggests that traders are hoping that Cohen uses some of GameStop’s $4.6 billion in cash and cash-like securities to take a page from Saylor’s playbook. (That playbook has one rule: buy bitcoin).”Here’s GME this morning, up as much as 7% about 30 minutes into the trading session:Back in December 2023, GameStop’s board gave Cohen the authority to use the company’s capital to make investments, essentially laying the groundwork for GameStop to be turned into a holding company similar to the Daily Journal (DJCO) company formerly chaired by the late Charlie Munger, or, more grandiosely, Berkshire Hathaway (BRK-B, BRK-A).Sa
Mar. Feb 11th, 2025
