US: Stocks end higher as traders shake off trade tensions
[WASHINGTON] US stocks shook off a gloomy start to the week to close higher on Monday, with traders looking through the new trade uncertainty fueled by President Donald Trump's recent tariff threats.
On Friday, Trump unleashed a new fear into the financial markets, threatening to double steel tariffs from 25 per cent to 50 per cent.
But by Monday afternoon, traders were adopting a more buoyant mood, with all three major indices on Wall Street closing higher.
The Dow Jones Industrial Average closed up 0.1 per cent at 42,305.48, while the broad-based S&P 500 finished up 0.4 per cent at 5,935.94.
The tech-rich Nasdaq Composite also rose, climbing 0.7 per cent to 19,242.61 amid enthusiasm about the impact of AI on profits.
'I think we are seeing a bit of continuation of the positive interpretation of the market from Nvidia's earnings,' Angelo Kourkafas from Edward Jones told AFP, referring to the chip titan's recent strong results.
'Artificial intelligence remains a powerful driver for earnings,' he continued, adding that the financial markets had become 'a little insensitive' to the constant tariff threats from the White House.
'We are moving away from the worst case scenarios,' he said.
While the broader markets finished higher, the steel tariff news hit auto makers hard, with both Ford and General Motors finishing the day down 3.9 per cent. AFP
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