The US equities gained on Monday amid optimism stemming from speculations about the Israel-Hammas ceasefire. However, the gains reversed and closed the day in negative territory.
The US stocks stayed flat on Tuesday as investors went perplexed amid new tariff threats imposed by President-elect Donald Trump. Trump proposes 25% tariffs on imports from Canada and Mexico while 60% duty on Chinese goods. However, the markets have ignored these speculations as analysts suggest that such policies may be softened during negotiations.
On the other hand, Scott Bessent, a hedge fund executive who has been nominated as Treasury Secretary, has triggered optimism. Bessent’s appointment has been viewed as a stabilizing force to normalize Trump’s aggressive trade policies. Treasury yields have declined, signaling a rise in investor confidence.
On the earnings front, the Best Buy shares plummeted 7% during the premarket trading as the earnings and revenues were reported weaker than expected. Earnings came in at $1.26 per share which is below the estimate of $1.29. The revenue came at $9.45 which fell short of expectations, revealing a shrink in demand.
Meanwhile, HSCBC has changed its stance from “buy” to “hold” for Goldman Sachs and Morgan Stanley, signaling a limited upside potential. Goldman Sachs has gained over 56% so far this year, while Morgan Stanley gained 43%.
The S&P 500 has been maintaining a solid long-term trend, rebounding from October 2022. The index made a 26% gain in 2023 and the same in 2024 as well. Trump’s first term showed a pattern that he used to soften his stance when the S&P 500 got into trouble. Hence, analysts are optimistic about the equities trend in 2025.
