Investors weighed the recent global trade developments as they boosted Nasdaq Composite, S&P 500, and Palantir.
The Nasdaq, which is dominated by tech stocks, rose 1.2% while the S&P 500 gained 0.7%.
Dow Jones Industrial Average gained 144 points or 0.3%.
Palantir’s stock soared by 22% following better-than expected fourth quarter earnings. The company has now set a new record.
Nvidia gained 2% in the same session.
China will impose tariffs against US imports
China is imposing tariffs starting February 10 on an array of US imports.
There are also tariffs of 10% on crude oil and 15% on coal.
The President agreed to delay tariffs on Canada by at least 30 day.
Justin Trudeau, the Canadian prime minister, announced this news Monday night on the social media website X.
Trump also has agreed to stop imposing more aggressive tariffs against Mexico.
The major averages finished Monday in losses despite an impressive turnaround following a global sell-off.
The Dow fell by 0.28%. S&P 500 dropped 0.76%. Nasdaq Composite lost 1.2%.
David Morrison is a senior analyst with Trade Nation. He said that “US stock indexes crashed on Monday morning, after President Trump issued executive orders on the weekend, which imposed 25% tariffs on imported goods from Mexico and Canada, (which were reduced to 10% for oil), and an extra 10% tariff on Chinese products.
News of the news led to an immediate selloff in global stocks and a strong rally in US dollars, despite the weakness in Canadian and Chinese currencies. Later that same day, the equities recovered from their lowest levels on news of a one-month delay in Mexican tariffs.
PepsiCo stock plunges
PepsiCo stock fell by more than 4% after the announcement of the fourth quarter financial results. The company revealed that its revenue was below analyst estimates.
Investors are concerned about this company’s growth potential in light of the ongoing challenges in the economy and the increased competition within the food and beverages industry.
LSEG reports that PepsiCo revenue for the third quarter came in at $27.78 Billion, which was slightly lower than analysts’ expectation of $27.89 Billion.
The company has seen a decline in sales of its snacks and beverages for five consecutive quarters.
Merck shares down
Merck stock dropped by 11% in pre-market trade.
The pharmaceutical company released its guidance for the full year, but it failed to match the industry analyst’s expectations.
The fact that Merck expects to earn or generate less revenue than previously predicted by analysts has caused investors concern and led them to sell their shares.
Earnings per share projected by the company for 2025 range between $8.88 to $9.03. The FactSet consensus analyst estimate for 2025 is $9.13. This falls below the range of $8.88 to $9.03.
Merck’s revenue projections of $64.1 to $65.6 billion were lower than analysts’ expectations.
Shares of General Motors, Ford Motor and Chrysler rise
The share prices of General Motors (GM) and Ford Motors (FORD) each increased by over 1% after Donald Trump declared a 30-day suspension on tariffs on Canadian imports. This decision followed a similar one made for Mexico.
After the announcement that Trump’s administration would impose 25% on both Mexican and Canadian imports, the automotive industry suffered a major blow.
The news was particularly devastating to two large automakers with significant manufacturing facilities in North America and Mexico.
Tariffs are expected to cause disruption in supply chains, increase production costs and lead to stock price declines on Monday.
General Motors fell 3.2% on Monday. Ford Motor fell 1.9%.
The post S&P 500 and Nasdaq rise on Palantir’s strong gains; PepsiCo, Merck, and Ford shares fall, may change as new information is released.
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