Tech Stocks Rebound Amid Tariff Tensions

The S&P 500 and Nasdaq gained as tech stocks rebounded amid tariff discussions. Trump's new tariff plans on Canadian, Mexican, and Chinese imports raised market concerns. Short-term interest-rate futures adjusted as the Fed showed indecision on further cuts. Automakers saw stock declines due to supply chain worries.

The benchmark S&P 500 and Nasdaq continued their upward trend on Tuesday, driven by a rally in technology stocks, while market participants considered President-elect Donald Trump's tariff proposals. The Federal Reserve's recent minutes revealed a division among officials regarding future interest rate cuts. U.S. short-term interest-rate futures reduced earlier losses following this revelation.

The discussions from the Fed's November meeting suggested a wait-and-see approach in offering monetary policy guidance. Trump's announcement of a 25% conditional tariff on Canadian and Mexican imports, which may challenge an existing trade agreement, further intensified trade tensions. An additional 10% tariff on Chinese imports was also proposed, escalating the threat of a trade conflict.

Shares of Ford and General Motors declined significantly, reflecting worries about increased production costs and potential revenue dips. Market analyst Robert Pavlik remarked on the current investor uncertainty. Major indices showed mixed results with the Dow Jones experiencing a slight decline, while the S&P 500 and Nasdaq posted gains, supported by tech giants like Microsoft and Apple. Financial and automotive sectors faced challenges amid complex trade and regulatory landscapes.

(With inputs from agencies.)