Wall Street Indexes Extended Rally to Third Day Amid Trump Tariff Chaos

Barry Adams
06 Feb, 2025
New York City

Wall Street indexes extended the rally to the third consecutive session, and investors overlooked tariff-caused trade tensions. 

The S&P 500 index edged up 0.1%, and the Nasdaq Composite advanced 0.2% as more than 70 companies released since the closure of regular trading hours on Wednesday. 

Investors reacted to announcements from Ford Motor Company, Honeywell International, Qualcomm, Arm Holdings, Costco, T. Rowe Price, Cognizant, and Peloton. 

Despite the mild rebound, investor confidence is shaken in the incoming presidential administration after reversing several tariff measures announced just a week ago. 

The Trump administration appears to score political victories and force foreign governments to meet its demands using tariffs as a negotiating tool. 

However, Trump was forced to cave in and "delay" imposing tariffs on goods from Mexico and Canada with little to show in return. 

The U.S. Postal Service was also forced to halt processing inbound shipments from China and Hong Kong, only to suspend the block hours later. 

Moreover, higher tariffs on foreign goods are stoking inflation, forcing the Federal Reserve to hold higher rates for longer.

 

U.S. Stock Movers 

Arm Holdings PLC decreased 3.9% to $166.50 despite the advanced semiconductor chip designers reporting better-than-expected revenue and adjusted earnings in the fiscal third quarter. 

Qualcomm dropped 4.5% to $168.0 despite the advanced chipmaker reporting better-than-expected revenue and earnings in the fiscal first quarter. 

Ford Motor declined 5.5% to $9.47 after the passenger car and vehicle maker estimated a difficult 2025 amid rising tariffs on parts shipped from foreign locations. 

Honeywell International Inc. declined 3.5% to $215.49 after the automation company's revenue and earnings outlook fell short of some investors expectations. 

The company estimated fiscal year revenue between $39.6 billion and $40.6 billion and earnings per share between $10.10 and $10.50.