In the early hours of the 5th Beijing time, U.S. stocks closed higher on Tuesday, with technology stocks being the main driving force. Palantir's stock price soared 24%, leading the gains among Nasdaq components. The market continued to focus on the dynamics of Trump's trade policies, especially regarding tariff disputes between the U.S., China, Canada, and Mexico. Investors are also assessing the upcoming earnings reports of tech companies and other economic data.
Specifically, the Dow Jones rose 134.13 points to close at 44,556.04, a gain of 0.30%; the Nasdaq climbed 262.06 points to 19,654.02, an increase of 1.35%; the S&P 500 index rose 43.31 points to 6,037.88, a rise of 0.72%.
Palantir performed remarkably well, with its stock price surging 24% by the close. The company reported a 64% spike in commercial sales, with annual sales forecasts exceeding general Wall Street analysts' expectations, becoming the focus of market attention.
Meanwhile, the latest data from the U.S. Bureau of Labor Statistics indicated that the number of job vacancies in December decreased from 8.16 million to 7.6 million, exceeding expectations. This data aligns with the gradually slowing labor market trend and further supports the Federal Reserve's view that the job market no longer constitutes an inflationary pressure.
Additionally, U.S. factory orders fell by 0.9% in December from the previous month, slightly below market expectations, raising concerns about an economic slowdown.
Trump's tariff policies continue to affect market sentiment. In response to the U.S.'s unilateral tariff hikes, the Chinese government announced additional tariffs on certain U.S. goods, including coal, liquefied natural gas, and crude oil, effective from February 10, 2025. Meanwhile, President Trump signed an executive order last week imposing a 25% tariff on imports from Mexico and Canada and a 10% tariff on all goods imported from China. Analysts pointed out that Trump's policy severely violates World Trade Organization rules and has significantly disrupted global trade relations.
Another major source of market volatility stemmed from Trump's announcement to delay the implementation of tariffs on Mexican goods, which shifted investor sentiment. U.S. stocks opened sharply lower that day, with the Dow sliding over 600 points at one stage, but rebounded after Trump announced the tariff delay, although they still closed lower. The Dow ultimately fell 0.28%, the S&P 500 index declined 0.76%, and the Nasdaq's drop was 1.2%.
Analysts noted that Trump's tariff policies will introduce uncertainty into the U.S. economy, particularly impacting consumer spending and corporate profits. Analysts at JPMorgan and Goldman Sachs warned that tariff uncertainty might curb 2025 earnings growth for the S&P 500 index and increase the risk of stagflation in the U.S. economy.
In terms of individual stocks, Google faced a slight decline after the Chinese State Administration for Market Regulation launched an antitrust investigation against it. Morgan Stanley lowered its 2025 shipping volume forecast for Nvidia GB200, and revenue forecasts for companies like Merck and Pfizer also fell short of market expectations. Meanwhile, Tesla announced plans to offer its Megapack large-scale commercial energy storage batteries in Japan.
Additionally, Palantir projected its 2025 revenue to surpass market expectations, Sirius XM received a 2.3 million share increase from Warren Buffett, and PayPal's revenue exceeded expectations following its earnings report.
Overall, technology stocks continued to perform strongly, but the uncertainty surrounding Trump's tariff policies and changing economic data has led investors to remain cautious about future market movements.
