Equities Rise as Jitters Over Tariff Threat Subside – Europe Market Wrap

Following a turbulent session on Donald Trump’s first day in office, markets settled into a more serene atmosphere, with investors looking past the fear of tariffs to the potential boost from fiscal stimulus and tax cuts.

US stock futures, Treasuries, and the dollar all rose as investors focused on the potential for economic growth and business earnings during Trump’s second four-year term. Nonetheless, the lack of an overall narrative on trade restrictions thus far highlights the possibility of increased volatility in financial markets.

While stopping short of imposing new tariffs on his first day in office, Trump ordered his administration to address unfair practices globally and outlined levies he expects to place on two of America’s biggest trade partners in the next few weeks.

Contracts for the S&P 500 and Nasdaq 100 climbed approximately 0.5%. Treasury 10-Yr rates fell four basis points, to 4.58%.