Equities Rose as Impending Steel Tariffs Loomed Over Markets – US Market Wrap

Stocks started the week higher, recovering from a drop caused by concerns about inflation and US trade threats. The dollar gained, and gold reached a record high.

The advance in equities was led by the market’s most influential group – technology – with the Nasdaq 100 up over 1% Monday. Nvidia extended its five-day rally to about 15%, while Meta Platforms rose for the 16th straight session. Materials producers were also in the spotlight as President Donald Trump announced plans to impose 25% tariffs on all steel and aluminium imports to the United States. United States Steel and Alcoa rose at least 2.2%.

Trump announced on Sunday that steel and aluminium tariffs would apply to shipments from all countries, including major suppliers Mexico and Canada. He did not specify when the duties would take effect. The president also announced this week that he would impose reciprocal tariffs on countries that tax US imports.

Aside from the global trade picture, investors will also be focused on this week’s key inflation data and Federal Reserve Chair Jerome Powell’s testimony before Congress. Expected inflation rates over the next year and three years ahead were both unchanged in January at 3%, according to results of the New York Fed’s Survey of Consumer Expectations published Monday.

Hedge funds became major buyers of US stocks last week, shifting from a previously bearish stance in response to better-than-expected earnings reports. They purchased US equities at the fastest rate since November, resulting in the most net buying of single stocks in more than three years, according to Goldman Sachs Group Inc.’s prime broking report for the week ended February 7. The most activity occurred in the information technology sector.