The S&P 500 and Nasdaq Composite rose on Tuesday, while Dow Jones slipped as investors assessed the threat of new tariffs from President-elect Donald Trump.
The S&P 500 index rose 0.2%, while the Nasdaq Composite climbed more than 0.5%.
The Dow Jones Industrial Average slid 0.6%, dragged down by sharp losses in Amgen’s stock.
The Dow Jones Industrial Average closed at a record high on Monday, as investors cheered the nomination of Scott Bessent as Treasury Secretary, but has struggled to maintain that level Tuesday.
The S&P 500 index also hit a new intraday high on Monday, while the small cap-focused Russel 2000 also climbed to fresh high in today’s session.
That advance came as Treasury yields fell with traders taking a favorable view of Bessent leading the department.
Many investors view the hedge fund manager as a champion of financial markets and the economy given his background, and as someone who could potentially counteract some of Trump’s aggressive trade aspirations, according to a CNBC report.
Investors will now wait for the release of the minutes from the US Federal Reserve’s last policy meeting earlier this month.
The US stock markets will be closed on Thursday on account of Thanksgiving holiday, and is scheduled to close early on Friday.
Volumes are expected to remain low for the remainder of the week.
Trump threatens more tariffs
Trump said in a social media post on Monday that he intended to impose a 25% tariff on all imported goods from Canada and Mexico.
He also said an additional 10% tariff will be imposed on Chinese imports, noting that there is a lack of progress on China’s part towards curbing the flow of illegal drugs to the US.
This is on top of an already proposed 60% tariff increase on China.
Trump’s comments raised concerns about a fragile global economy with a full-blow trade war between the world’s biggest economies.
Amgen Inc and Kohl’s shares plummet
Amgen Inc’s stock slipped 12% on Tuesday after the company said its experimental weight loss drug helped patients lose up to 20% body weight.
However, the trial results were at the low end of investors’ expectations.
Meanwhile, shares of Kohl plunged nearly 20% on Tuesday after the retailer’s third-quarter earnings results missed Wall Street’s estimates.
During the quarter, the company earned 20 cents per share on $3.31 billion in revenue, below the consensus estimates of 28 cents per share on $3.64 billion revenue, according LSEG.
Meanwhile, comparable shares dropped 9.3% during the quarter compared with expectations of a drop of 5.1%.
Shares of the retailer have dropped around 36% so far since the beginning of this year.
Dick’s Sporting Goods jump
Shares of Dick’s Sporting Goods jumped more than 5% before the bell on Tuesday after the retailer posted positive earnings and guidance.
The Pennsylvania-based company earned an adjusted $2.75 per share on $3.06 billion in revenue in the third quarter.
That’s ahead of the forecasts for $2.68 a share and $3.03 billion from analysts polled by LSEG.
The company also lifted its full-year outlook.
Shares have surged more than 46% in 2024, according to CNBC.
Consumer confidence rises
The US Conference Board’s report showed on Tuesday that consumer confidence rose in November, while expectations for the stock market hit a record high.
The US consumer confidence index increased to 111.7, or 2.1 points higher this month compared with October, and slightly above the Dow Jones estimate of 111.
At the same time, 56.4% of respondents said they expect stock market prices to be higher a year from now, a fresh record.
Inflation expectations also improved, with the five-year outlook down to 4.9%, the lowest since March 2020.
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