US open: Stocks lower as Trump slaps tariffs on trade partners
By Iain Gilbert
Date: Monday 03 Feb 2025
(Sharecast News) - Major indices were in the red early on Monday after Donald Trump slapped several key trading partners with tariffs, leading to fears that a full-blown trade war would disrupt global supply chains, reignite inflation and slow economic growth.
As of 1555 GMT, the Dow Jones Industrial Average was down 0.36% at 44,383.79, while the S&P 500 lost 0.77% to 5,994.00 and the Nasdaq Composite came out the gate 1.03% weaker at 19,425.25.
The Dow opened 160.87 points lower on Monday, extending losses recorded in what was a volatile week for stocks as concerns about a bubble in the US artificial intelligence industry hammered market sentiment.
In focus early on Monday was news that Donald Trump slapped a 25% tariff on goods from Mexico and Canada and also placed a 10% levy on imports from China. Canada responded with retaliatory tariffs of its own, while China vowed to file a lawsuit with the World Trade Organization.
Although Mexico initially declared it would explore levies on US imports, Trump later announced that he had agreed to a one-month delay in tariffs for America's neighbours to the south lifting stocks from session lows.
Trump also indicated over that the UK and the European Union were next up for a fresh round of tariffs, stating the that both were "out of line". While he noted that a deal could possibly be "worked out" with the UK, he stated that EU tariffs "will definitely happen".
The yield on the benchmark 10-year Treasury note was slightly lower at the open and was trading at roughly 4.529%, while West Texas Intermediate futures were 0.08% higher at $72.59 a barrel and the ICE US dollar index was 0.32% stronger at 108.71.
On the macro front, S&P Global's manufacturing PMI was upwardly revised to 51.2 in January, ahead of both a preliminary estimate of 50.1 and December's 49.4 reading.
The Institute for Supply Management's January manufacturing PMI rose to 50.9 from a downwardly revised 49.2 reading for December, beating expectations of 49.8. Last month's reading also marked the first expansion in the factory sector after 26 straight months of contraction. New orders increased at a faster pace, while a rebound was recorded for production and employment. On the other hand, supplier deliveries were marginally slower, inventories fell more and price pressures intensified.
On another note, construction spending rose by 0.5% month-on-month in December to $2.19trn, according to the Census Bureau, following November's upwardly revised 0.2% uptick. On an annualised basis, construction spending grew by 4.3%.
In the corporate space, Alphabet, Amazon and Disney will all report earnings before the end of the week.
Reporting by Iain Gilbert at Sharecast.com
Dow Jones - Risers
Walgreens Boots Alliance, Inc. (WBA) $10.13 5.03%
Unitedhealth Group Inc. (UNH) $549.95 1.38%
Procter & Gamble Co. (PG) $168.05 1.24%
Verizon Communications Inc. (VZ) $39.78 1.00%
Amgen Inc. (AMGN) $287.66 0.85%
Visa Inc. (V) $344.12 0.68%
International Business Machines Corporation (CDI) (IBM) $257.10 0.55%
Boeing Co. (BA) $177.13 0.35%
Walmart Inc. (WMT) $98.43 0.27%
Chevron Corp. (CVX) $149.56 0.25%
Dow Jones - Fallers
Apple Inc. (AAPL) $229.23 -6.37%
Dow Chemical Co. (DOW) $37.79 -3.23%
Nike Inc. (NKE) $75.01 -2.46%
Intel Corp. (INTC) $19.66 -1.33%
3M Co. (MMM) $150.38 -1.20%
Travelers Company Inc. (TRV) $242.27 -1.19%
Caterpillar Inc. (CAT) $367.24 -1.13%
American Express Co. (AXP) $314.14 -1.04%
Microsoft Corp. (MSFT) $413.26 -0.92%
Salesforce.Com Inc. (CRM) $338.79 -0.85%
S&P 500 - Risers
Idexx Laboratories Inc. (IDXX) $465.61 9.64%
Gen Digital Inc. (GEN) $27.23 5.20%
Walgreens Boots Alliance, Inc. (WBA) $10.13 5.03%
Kroger Co. (KR) $63.68 3.31%
AbbVie Inc (ABBV) $189.85 3.24%
Nucor Corp. (NUE) $132.30 3.01%
Universal Health Services Inc. (UHS) $194.11 2.94%
Gilead Sciences Inc. (GILD) $99.39 2.47%
Vertex Pharmaceuticals Inc. (VRTX) $465.50 2.43%
Waste Management Inc. (WM) $225.44 2.35%
S&P 500 - Fallers
Apple Inc. (AAPL) $229.23 -6.37%
Franklin Resources Inc. (BEN) $21.02 -5.48%
Mattel Inc. (MAT) $17.99 -5.24%
FedEx Corp. (FDX) $251.35 -5.10%
PVH Corp. (PVH) $85.04 -5.09%
Nvidia Corp. (NVDA) $117.50 -4.93%
AES Corp. (AES) $10.50 -4.55%
Akamai Technologies Inc. (AKAM) $97.70 -4.51%
Microchip Technology Inc. (MCHP) $52.50 -4.34%
Blackrock Inc. (BLK) $1,029.06 -4.32%
Nasdaq 100 - Risers
Idexx Laboratories Inc. (IDXX) $465.61 9.64%
Gen Digital Inc. (GEN) $27.23 5.20%
Walgreens Boots Alliance, Inc. (WBA) $10.13 5.03%
Gilead Sciences Inc. (GILD) $99.39 2.47%
Vertex Pharmaceuticals Inc. (VRTX) $465.50 2.43%
Costco Wholesale Corp. (COST) $994.30 1.50%
Automatic Data Processing Inc. (ADP) $306.42 1.21%
Incyte Corp. (INCY) $74.82 1.16%
Vodafone Group Plc ADS (VOD) $8.66 0.93%
Broadcom Inc. (AVGO) $220.37 0.89%
Nasdaq 100 - Fallers
Apple Inc. (AAPL) $229.23 -6.37%
Nvidia Corp. (NVDA) $117.50 -4.93%
Mercadolibre Inc. (MELI) $1,857.41 -4.78%
Tesla Inc (TSLA) $386.13 -4.72%
Baidu Inc. (BIDU) $89.93 -4.43%
Microchip Technology Inc. (MCHP) $52.50 -4.34%
Skyworks Solutions Inc. (SWKS) $86.60 -4.16%
Align Technology Inc. (ALGN) $218.47 -3.83%
Charter Communications Inc. (CHTR) $344.34 -3.67%
Hasbro Inc (HAS) $56.98 -3.51%
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