
Company | Value | Change | %Change |
---|
The Nasdaq Composite outperformed, ending 1.3% higher, while the S&P 500 gained 0.7%. The Dow Jones ended with gains of 100 points. A Bloomberg gauge of the “Magnificent Seven” megacaps climbed 1.7%. Meta Platforms Inc. rose for a 12th consecutive session — its longest winning streak ever.
Gains were led by shares of Palantir, which surged 24% post a strong quarter. However, shares of tech giants Alphabet and AMD were hit in extended trading post their quarterly results.
“Short-term market jitters have proven good short-term buying opportunities,” said Craig Johnson at Piper Sandler.
The latest reading on US job openings underscored a gradual slowdown on the labor front. To Krishna Guha at Evercore, the data eases upside risks into Friday’s employment report in a way that is helpful for the Federal Reserve and markets.
Meantime, the first volleys in the latest US-China trade war made clear that Xi Jinping is taking a more cautious approach than during Donald Trump’s first term. After the US leader gave a last-minute reprieve to both Canada and Mexico, his 10% tariffs on China took effect on Tuesday. Within seconds, Beijing announced additional tariffs on roughly 80 products to take effect on Feb. 10.
“There is a reasonable likelihood that the ultimate impact from these tariffs may be less than expected,” said Todd Ahlsten at Parnassus Investments. “These tariffs may also represent the first round of an ultimate negotiation, which could reduce their ultimate impact.”
The yield on 10-year Treasuries declined five basis points to 4.51%. The Bloomberg Dollar Spot Index fell 0.7%. The Mexican peso slid 0.6%. Canada’s loonie rose 0.8%.
“This week will no doubt be a busy one as we follow the ‘telenovela’ that is the evolving tariff wars,” said Kristina Hooper at Invesco. “I would reiterate the importance of knowing your time horizon and acting accordingly. For the vast majority, that means to stay calm, diversified, and carry on.”
How about investors looking to be more tactical within their portfolio?
“Short-term selloffs are likely to present buying opportunities for those with a long enough time horizon if we see a similar scenario to the 2018-2019 tariff wars unfold again,” Hooper noted.
Nonetheless, a period of trade policy uncertainty could potentially weigh on markets until greater clarity emerges, she said.
“I’m cautiously optimistic that while we may see lots of drama, we may not see a meaningful long-term market impact,” Hooper said. “The market impact of the 2018-2019 US-China trade war subsided quickly once a resolution was reached.”
(With Inputs From Agencies.)