Wall Street started the week with small gains on Monday, staying close to record-high levels as the corporate earnings season began. However, investors are still worried about the impact of U.S. trade tariffs introduced during former President Donald Trump’s term.
- Market Performance:
The S&P 500 went up by 0.3%, slightly above last week’s record.
The Dow Jones gained 52 points (0.1%), and the Nasdaq rose 0.4%, reaching a new all-time high. - Company Highlights:
- Verizon shares jumped 3% after the company reported better-than-expected earnings and raised its full-year outlook.
- Microsoft dropped 0.4% after issuing a software fix for a serious SharePoint security issue that hackers were actively exploiting, including some attacks on U.S. federal agencies.
- Block Inc (formerly Square) surged 6.7% after being added to the S&P 500 index, replacing Hess Corp, which was acquired by Chevron.
- Cleveland-Cliffs, a steelmaker, rose 6.8% after posting a smaller-than-expected loss and shipping a record amount of steel. The company credited Trump-era tariffs for helping domestic manufacturers, especially those in the auto industry.
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- Earnings and Economic Concerns:
While tariffs have helped some companies like Cleveland-Cliffs, they’ve also made imported goods more expensive. Companies such as General Motors are dealing with the downsides and will report earnings later this week, along with Alphabet (Google), Coca-Cola, and Tesla.So far, early earnings reports look promising, with many companies beating expectations. Analysts say strong retail spending and rising travel demand could help boost overall business performance.
- Bond Market:
Bond yields dropped slightly. The 10-year U.S. Treasury yield fell from 4.44% to 4.38%. - Global Markets:
Global cues were mixed. European markets slipped slightly, while Asian markets rose modestly.
Japan’s stock market was closed for a public holiday, a day after Prime Minister Shigeru Ishiba’s party lost its majority in both houses of Parliament — the first time this has happened since 1955. He’s under pressure due to inflation and political instability but has said he will stay in office. Analysts expect more government spending, which may increase Japan’s already high debt.
Wall Street is off to a steady start this week as companies begin releasing their earnings. Some businesses are benefiting from past trade policies, while others are struggling with higher costs. Despite challenges, early results show signs of economic strength.
