Trump Tariffs and Policy Uncertainties Keep Wall Street Indexes In Check

Barry Adams
22 Nov, 2024
New York City

Stock market indexes struggled to stay above the flatline in early trading amid rising geopolitical, global trade barriers, and U.S. policy uncertainties. 

The S&P 500 index decreased 0.1% and the Nasdaq Composite dropped 0.2% as investors unwound tech trades following Nvidia's strong quarterly results. 

Market sentiment has been cautious this week as the reality of election results began to set in, the Ukraine-Russia war shows no signs of easing, and business activities contracted in the eurozone at the sharpest pace in the year. 

Investors are hoping that the next U.S. government will provide clearer plans to lower federal government debt, trim the annual budget deficit, and sustain labor market expansion and economic growth. 

Moreover, Trump administration cabinet appointees inspire little confidence, as top and second-tier candidates refuse to join the administration. 

Investors are worried that the sharp escalation of tariffs on imported goods from the European Union and China would contribute to another bout of inflation, forcing the Federal Reserve to keep higher interest rates for longer, which could drag the economy into a recession. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index decreased 0.1% to $5,962.25, the Nasdaq Composite declined 0.2% to 18,937.14, and the Russell 2000 index inched lower 0.1% to 2,354.92. 

The yield on 2-year Treasury notes edged higher to 4.33%, 10-year Treasury notes inched up to 4.40%, and 30-year Treasury bonds decreased to 4.58%.

WTI crude oil increased $0.28 to $69.81 a barrel, and natural gas prices edged up 2 cents to $3.31 a thermal unit.

Gold increased by $28.04 to $2,697.38 an ounce, and silver increased by $0.50 to $31.24.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 107.46.

 

U.S. Stock Movers 

Intuit Inc. declined 5.4% to $642.0 despite the financial software developer reporting better-than-expected quarterly results. 

Ross Stores rose 7.1% to $153.05 after the discount retailer reported better-than-expected quarterly results. 

Gap Inc. rose 15.2% to $25.38 after the specialty apparel retailer reported better-than-expected revenue and earnings in the latest quarter, and the company revised its full-year sales outlook. 

Texas Pacific Land increased 3.4% to $1,562.50, and the company was selected to join the S&P 500 index, replacing Marathon Oil, which is being acquired by ConocoPhillips. 

CNH Industries declined 3.8% to $11.47, reflecting the market weakness in the eurozone after business activities contracted in the currency union in November. 

Earlier in the month, the construction and agriculture equipment maker said third quarter revenue declined to $4.6 billion from $5.98 billion, net income attributable to shareholders fell to $310 million from $540 million, and diluted earnings per share decreased to 24 cents from 40 cents a year earlier.