U.S. stocks opened the day lower as investors awaited Federal Reserve Chairman Jerome Powell’s testimony before the Senate Banking Committee and updates on President Donald Trump’s tariff plans. Powell, in his first Congressional appearance since Trump’s inauguration, is expected to discuss the impact of tariffs on inflation and the economy, his economic outlook, interest rates, and the central bank’s independence. While most economists have lowered rate cut expectations for the year, some believe no cuts will be made. Powell began his testimony at 10 a.m. ET, emphasizing that rate cuts are not urgent.
On Wednesday, Powell will continue testifying before the House Financial Services Committee at 10 a.m. ET. Shares of steel and aluminum producers, such as Cleveland-Cliffs, United States Steel, Nucor, and Alcoa, extended gains following Trump’s announcement of a 25% tariff on these metals. European leaders have expressed a preference for negotiation but are prepared to impose their own levies if necessary.
By 10 a.m. ET, the S&P 500 was down 0.22%, the Dow had shed 0.22%, and the Nasdaq fell 0.22%. The 10-year yield rose to 4.531%. Key consumer inflation data for January are expected on Wednesday, with economists forecasting a 2.8% increase year-over-year. Producer price index data are due on Thursday, with an anticipated 0.3% monthly gain.
Corporate news has been positive so far this earnings season, with over half of S&P 500 companies beating earnings expectations. Notable highlights include Coca-Cola surpassing revenue estimates, Lattice Semiconductor exceeding revenue expectations, DuPont raising its 2025 profit forecast, and Phillips 66 gaining after news of activist investor Elliott Investment Management’s stake. Not all results were favorable, with Vertex Pharmaceuticals missing earnings per share forecasts.
In other news, Astera Labs performed well in recent months, while a group led by Elon Musk made a large bid for OpenAI, which stated it is not for sale.
Stock market indexes began the month of February on a negative note as they opened in a downward trajectory. This was in response to U.S. President Donald Trump’s signing of an executive order imposing 25% tariffs on imports from Canada and Mexico, as well as implementing a 10% levy on imports from China. The move was aimed at reshaping trade policies and protecting domestic industries. The photo accompanying the news captured the seriousness of the situation, illustrating the impact of these decisions on the global economic landscape.
In the realm of cryptocurrencies, the Securities and Exchange Commission made headlines by seeking a pause in its legal action against the popular crypto exchange Binance. This development hinted at a potentially favorable stance towards cryptocurrencies under the Trump administration. The previous SEC administration had accused Binance of running unregistered exchanges, misrepresenting trading controls, and mixing investors’ funds with the company’s assets. Binance vehemently denied these allegations, claiming the case lacked substance.
As the news unfolded, the price of Bitcoin fluctuated, ultimately showing a marginal decrease of 0.45% to settle at $97,032.85. This movement in the cryptocurrency market reflected the uncertainty and volatility prevalent in the financial world at that time. Meanwhile, Medora Lee, a respected reporter specializing in money, markets, and personal finance at USA TODAY, provided valuable insights into these developments. Readers were encouraged to subscribe to the free Daily Money newsletter for regular updates on personal finance tips and business news.
The article, originally published by USA TODAY, highlighted the significance of the stock market dip and emphasized the importance of monitoring Federal Reserve Chair remarks and the potential fallout from the imposed tariffs. This comprehensive coverage aimed to keep readers informed and prepared for the financial implications of these significant events.
