New York
CNN
—
US stocks opened higher Tuesday in the first full day of Donald Trump’s second presidency as traders absorbed a blizzard of executive orders that so far point to less aggressive action on trade.
The Dow rose 170 points, or 0.39%. The S&P 500 ticked up by 0.49% and the tech-heavy Nasdaq Composite moved higher by 0.52%.
President Trump said in an Oval Office signing ceremony Monday that his administration would levy a 25% tariff on Mexico and Canada starting February 1. He did not mention a tariff on China, the US’ biggest trade partner.
Asked Monday at an Oval Office signing ceremony about tariffs on China, Trump noted extensive tariffs he imposed during his first administration were still in effect after former President Joe Biden largely left them in place.
Trump also implied that the US would implement tariffs on China if Beijing did not approve any deal on TikTok, which is facing a ban in the US due to questions about national security and scuttling the First Amendment.
The dollar, which has been gaining in recent months in anticipation of Trump’s second term, was largely flat Tuesday morning after rising on news of Trump’s proposed tariffs.
WTI crude oil, the US benchmark, fell 2.5% early Tuesday after Trump announced executive orders focused on reversing regulations and enabling the drilling of oil in the US.
The yield on the 10-year Treasury note fell, boding well for stocks.
Analysts at Morgan Stanley said in a Tuesday note that Trump’s focus on tariffs as early as February 1 is a reminder that “vigilance is warranted” as markets try to keep track of Trump’s flurry of policy decisions.
From Trump’s election in November until inauguration day, the S&P 500 gained almost 4%, according to Sam Stovall, chief investment strategist at CFRA Research. That was the 11th best performance since 1944 during the “post-election honeymoon period,” he wrote in a note.
Positive performance during that period has been a signal for gains during both the first 100 days of the presidency and the entire year almost 80% of the time, according to Stovall.
Investors will be keen to see whether the good times can keep rolling under the Trump administration.
Bitcoin fell almost 3% after surging to a record high above $109,00 on Monday. Trump did not mention the cryptocurrency during his inaugural address, though he and his wife, First Lady Melania Trump, each released their own meme coins over the weekend.
Wall Street was closed Monday in observance of Martin Luther King Jr. Day.
This is a developing story and will be updated.
CNN’s Kayla Tausche, Kevin Liptak and David Goldman contributed reporting.