Traders work on the floor at the New York Stock Exchange in New York, Monday, Feb. 3, 2025. (AP Photo/Seth Wenig)
New York, United States — Stock markets managed to push higher on Tuesday but investors braced for volatility as President Donald Trump pressed on with tariffs against China after delaying duties on Mexican and Canadian imports.
Beijing said it was imposing levies on imports of US energy, vehicles and equipment after Trump’s 10 percent tariffs came into effect.
Article continues after this advertisementBut Art Hogan of B. Riley Wealth said markets were taking a wait and see view of Trump’s trade policy given the pullback on Mexico and Canada, while regarding earnings as “a positive tailwind.
FEATURED STORIES BUSINESS BIZ BUZZ: BSP to help fight ‘love scams’ BUSINESS Gov’t ends 2024 with P16.05 trillion debt pile BUSINESS January inflation steady at 2.9% as rice price growth hits over 4-yr lowREAD: Stocks and peso boosted by Trump’s Mexico, Canada tariff delay
All three US indices finished higher after a sluggish start.
Article continues after this advertisementThe hesitant trading came after heavy selling Monday following Trump’s weekend announcement of the tariffs, before later offering a reprieve for the United States’ closest neighbors.
Article continues after this advertisementInvestors also tracked mixed earnings from major companies — including alcoholic drinks giant Diageo, which scrapped a key performance target as it predicted sales of tequila and Canadian whisky in the key US market would be hit by the tariffs.
Article continues after this advertisementIn the United States, PepsiCo slumped after it reported flat quarterly sales while the soda and snacks giant worked to address “subdued” demand in North America and faced “business disruptions due to geopolitical tensions in certain international markets.”
But Palantir Technologies piled on more than 20 percent after reporting a 36 percent increase in revenues based on artificial intelligence growth as its CEO described Palantir as a “software juggernaut.”
Article continues after this advertisementIndexes from Japan to New York were sent tumbling Monday after news at the weekend that Trump had signed off 25 percent duties against Mexico and Canada, fanning concerns for the stuttering global economy.
Hours before the tariffs were due to kick in, Trump said he would postpone the measures until March.
“A risk is that this is the beginning of a tit-for-tat trade war, which could result in lower GDP growth everywhere, higher US inflation, a stronger dollar and upside pressure on US interest rates,” said Stephen Dover, chief market strategist and head of Franklin Templeton Institute.
“The uncertainty surrounding the permanence of these tariffs makes it challenging for companies to make informed capital investment decisions,” he added.
Trump has warned that the European Union would be next in the firing line and has not ruled out tariffs against Britain.
The volatile start to February on markets follows their roller-coaster ride last week after China’s DeepSeek unveiled a cheaper artificial intelligence model rivalling those of US tech giants, sparking questions over the vast sums invested in the sector in recent years.
“One thing we can say for sure. Markets are going to remain subject to massive headline risk in coming hours… days… and years,” forecast Ray Attrill, foreign currency strategist at National Australia Bank.
Key figures around 2140 GMTNew York – Dow: UP 0.3 percent at 44,556.04 (close)
New York – S&P 500: UP 0.5 percent at 6,037.88 (close)
pika68 slotNew York – Nasdaq: UP 1.4 percent at 19,654.02 (close)
London – FTSE 100: DOWN 0.2 percent at 8,570.77 (close)
Paris – CAC 40: UP 0.7 percent at 7,906.40 (close)
Frankfurt – DAX: UP 0.4 percent at 21,505.70 (close)
Tokyo – Nikkei 225: UP 0.7 percent at 38,798.37 (close)
“We have seen reports the DPRK has sent forces and is preparing to send additional soldiers to Ukraine to fight alongside Russia,” Robert Wood, US ambassador to the United Nations, told the Security Council.
Raba’s father (who used to own a chlorination business that serviced water districts and local utilities) wanted him to become a mechanical engineer so he could eventually take over the business. Instead, Raba enrolled and graduated with a vocational-technical certificate in automotive mechanics, a far cry from his father’s original dream. “Bata pa, mahilig na talaga ako sa kotse. Sa 13 kaming magkakapatid, ako lang ang natutong mag-drive. At dahil sa vocational course ko, nahasa na lang din ako sa pagme-mekaniko. Ang pangarap ko lang talaga noon pa ay magkaroon ng sariling kotse (I was really fond of cars since I was young. Out of 13 children in the family, I am the only one who knows how to drive. And because of my vocational course, I also became adept in fixing and maintaining cars. My only dream since I was young is to have my own car),” the 47-year-old Novaliches native said.
Hong Kong – Hang Seng Index: UP 2.8 percent at 20,789.96 (close)
Shanghai – Composite: Closed for a holiday
Euro/dollar: UP at $1.0383 from $1.0344 on Monday
Pound/dollar: UP at $1.2480 from $1.2450
Dollar/yen: DOWN at 154.32 yen from 154.73 yen
Euro/pound: UP at 83.16 pence from 83.08 pence
West Texas Intermediate: DOWN 0.6 percent at $72.70 per barrel
Subscribe to our daily newsletter
Brent North Sea Crude: UP 0.3 percent at $76.20 per barrelmango win
READ NEXT Spain moves to slash working week to 37.5 hours Bargain hunting lifts PSEi back to 6,000 EDITORS' PICK Illegal mining allegedly perpetrated by Chinese in Surigao City leaves deep, painful scars Gov’t ends 2024 with P16.05 trillion debt pile 10 killed in what officials say is Sweden’s worst mass shooting Philhealth chief replaced in wake of ouster calls SC asks gov't to comment on petition vs 2025 budget DA goal: Cut rice prices to 2023 levels of P41-P45 MOST READ DILG: Edsa bus lane may be removed, motorcycles to be allowed in bike lanes Car owners may eventually have to pay fees to use Edsa, says Remulla SC justice: PhilHealth prioritized investments, not benefits Chinese-named X accounts spread fake news to defend Dutertes – group Follow @FMangosingINQ on Twitter --> View comments