The New York stock market staged a comeback on Tuesday.
Concerns about the trade war triggered by U.S. President Donald Trump’s tariff policies caused the market to decline for two consecutive days, on January 31 and February 3. However, investors overcame their anxieties on the third day, and the market rebounded.
Despite the tariffs imposed on China and China’s retaliatory measures, including 10-15% tariffs on U.S. coal, agricultural machinery, and liquefied natural gas (LNG), which will begin on February 10, market sentiment improved.
Optimism grew due to ongoing negotiations with Mexico, which agreed to postpone the tariff for a month, and expectations for reaching an agreement with Canada.
Market Rebounds After Three-Day Slump
Wall Street rebounded after three trading sessions of losses.
Tech stocks led the charge.
The Nasdaq surged 262.06 points (1.35%) to close at 19,654.02, while the S&P 500 reclaimed the 6,000 mark, finishing up 43.31 points (0.72%) at 6,037.88.
The Dow Jones Industrial Average saw more modest gains, rising 134.13 points (0.30%) to 44,556.01.
The CBOE Volatility Index (VIX), Wall Street’s “fear gauge,” plummeted 1.41 points (7.57%) to 17.21.
M7 Stocks Surge
All M7 big tech stocks posted gains.
Apple climbed $4.79 (2.10%) to $232.80, while Nvidia rose $1.99 (1.71%) to $118.65.
Bank of America set a $190 target price for Nvidia, predicting continued growth despite deepfake concerns and trade war impacts.
Tesla rebounded from recent losses, surging $8.53 (2.22%) to $392.21.
Alphabet closed regular trading up $5.15 (2.56%) at $206.38. However, disappointing quarterly earnings released after hours caused the stock to tumble $14.18 (6.87%) to $192.20 in extended trading.
In particular, cloud revenue of $11.96 billion fell short of the expected $12.19 billion, casting a shadow over tech stock prospects for Wednesday.
Palantir Reaches New Heights
Palantir, a software provider for government and corporate sectors, hit an all-time high.
Strong Q4 results and an optimistic annual outlook fueled the stock’s ascent.
With over two-thirds of its U.S. revenue from government contracts, and given co-founder Peter Thiel’s support for Trump, expectations are high for potential benefits under a second Trump administration.
Palantir shares skyrocketed $20.09 (23.99%) to $103.83, marking their highest close and the company’s first time breaking the $100 barrier.
Oil Prices End Mixed
Global oil markets closed with mixed results.
U.S. crude prices dipped as China announced retaliatory tariffs on U.S. oil imports.
West Texas Intermediate, the U.S. benchmark, fell $1.46 (0.63%) to $72.70 per barrel for March delivery.
The decline followed China’s plan to impose 10-15% tariffs on U.S. products, including oil and LNG, starting February 10.
Concerns about slowing exports also weighed on prices.
Meanwhile, Brent crude, the international benchmark, edged higher.
Brent for April delivery rose $0.24 (0.32%) to $76.20 per barrel.
