U.S. stocks closed higher on Monday, driven by strong performances from artificial intelligence stocks and a boost for steelmakers due to tariff threats from former President Donald Trump. The S&P 500 rose by 0.67%, the Nasdaq by 0.98%, and the Dow Jones Industrial Average by 0.38%. McDonald’s saw a notable climb after reporting a rise in its global comparable sales for the fourth quarter.
The company’s strong performance underscored a broader trend of consumer spending resilience. Investors are eagerly awaiting Federal Reserve Chair Jerome Powell’s testimony before Congress this week. Powell’s statements are expected to provide insights into future tariff policies and their potential impact on inflation.
Stocks driven by AI and tariffs
Meanwhile, gold reached a record high as investors braced for further shifts in U.S. trade policy. The market remained cautious ahead of Powell’s upcoming address, with traders keenly focused on the interplay between tariffs and inflation.
Trump announced plans to impose a flat 25% tariff on steel and aluminum imports “without exceptions or exemptions,” in a move he hopes will aid struggling U.S. firms in the sector, though it risks sparking a multi-front trade war. In 2023, steel imports accounted for 23% of American steel consumption, according to American Iron and Steel Institute data, with Canada, Brazil, and Mexico being the largest suppliers. The immediate effect of the tariffs was a boost to U.S. steelmakers on Monday, with shares in firms like Nucor, U.S. Steel, and Steel Dynamics gaining 4%, while Alcoa rose 2%.
European steelmakers like Thyssenkrupp and Salzgitter, however, saw marginal declines. In currency markets, the dollar remained stable despite the tariffs, while gold surged to a record high of $2,942.70 per ounce before retreating.
