Stocks ended higher Monday as investors shrugged off a new tariff threat from President Donald Trump, as well as comments that could upset Treasury bond markets, ahead of a key week for inflation data and monetary policy updates on Wall Street.
The Dow Jones Industrial Average climbed 167.01 points, or 0.38%, to finish the session at 44,470.41, while the S&P 500 rose 0.67% to end at 6,066.44, and the tech-heavy Nasdaq climbed 0.98% to end the day 19,714.27, with Nvidia and other chipmakers posting gains.
Analysts at LPL Financial said that the Chinese AI chatbot DeepSeek and headline tariff risk have rattled markets, but, "despite near-term risks, we believe investors should give the bull market the benefit of the doubt."
"After all, since 1950, the average bull market tends to last over five years, and this bull just turned two last October," the firm said in its weekly market commentary. "Plus, it's hard to dispute the bullish momentum in the broader market."
The S&P 500's impressive 23.3% gain in 2024 carried over into January, LPL Financial said, and despite a slow start, the index rebounded to achieve a 2.7% gain last month, and historically, a positive January has been a bullish indicator for stocks.
Updated at 12:38 PM EST
Tesla skid
Tesla (TSLA) shares were back in the red Monday, extending the decline from their mid-December peak to around $290 billion, amid a series of sales figures showing a notable decline in demand in key overseas markets.
China's Passenger Car Association said Friday that Tesla's January sales fell 11.5% from last year to 63,238 units, and were down more than 32% from December levels.
Registrations in Germany, meanwhile, plunged 59% to the lowest since July of 2021 with some analysts citing CEO Elon Musk's close ties to President Trump and his work in identifying alleged waste and fraud in the U.S. federal budget.
Tesla shares were last marked 0.8% lower on the session and changing hands at $358.69 each, a move that still leaves the stock up more than 81% over the past six months.
Why do you think $TSLA is down 8% YTD?
— amit (@amitisinvesting) February 10, 2025
- street upgrades across the board to $400+
- unsupervised FSD launching in Texas in June
- robotics continuing to see traction even if no commercial deals
i think the street is concerned about European registrations being down 20% YoY and… pic.twitter.com/nyxR6C4Lfk
Updated at 11:06 AM EST
Inflated views
The New York Fed's survey of consumer inflation expectations showed year-ahead forecasts held steady at 3% last month, but eased modestly from December levels for the five-year forecast, which was also pegged at 3%.
"Commodity price expectations rose across the board, with the expected price change for gas, food, medical care, education, and rent all increasing," the central bank said. "Labor market expectations were mixed, with job loss and job finding expectations both rising and unemployment expectations falling to the lowest level since July 2021."
"Household spending growth expectations also declined in January, hitting the lowest level seen in the last four year," the NY Fed survey noted.
🇺🇸 NY #Fed Survey Sees Inflation Expectations Edge Up Before Tariffs - Bloomberg
— Christophe Barraud🛢🐳 (@C_Barraud) February 10, 2025
*Expected inflation five years ahead rose to 3% last month, the highest since May 2024, according to results of the New York Fed’s Survey of Consumer Expectations published Monday. pic.twitter.com/KHw0whHymk
Updated at 10:52 AM EST
Golden days
Gold prices look set to test the $3,000 mark this week amid the ongoing uncertainty tied to President Donald Trump's tariff agenda, rising U.S. debt levels, renewed inflation risks and central bank purchases.
"We could see similar growth in gold prices to what we’ve seen in the S&P 500 over the past several years, so I don’t think it’s unlikely that gold wouldn't continue the past five-year run," said David MIller, co-founder and CIO at Catalyst Funds.
"We had a particularly big year for gold last year, but there's a good chance that that run continues in a similar way driven by all the central bank funding," he added.
Gold was last marked 1.7% higher from Friday's closing peg, trading at $2,905.25 per ounce, taking its year-to-date gain to around 10.7% and its one-year advance past 43.5%.
The SPDR Gold Shares ETF GLD, the world's largest exchange-traded fund tied to gold prices, was last marked 1.66% higher in early trading at $268.26, a move that extends its 2024 gain to around 9.3%.
Related: Gold price eyes $3,000 as bullion surges
Updated at 9:34 AM EST
Solid open
The S&P 500 was marked 33 points, or 0.55% higher in the opening minutes of trading, with the Nasdaq rising 144 points, or 0.74%.
The Dow gained 287 points while the mid-cap Russell 2000 index jumped 12 points, or 0.54%.
"Historically, February has been a so-so month for stocks, and it got off to bumpy start last week," said Chris Larkin, managing director for trading and investing at E*TRADE from Morgan Stanley. "This week, inflation data, Jerome Powell’s congressional testimony, and tariffs are poised to drive the market story."
"If the S&P 500 is going to break out of its two-month consolidation, it may need a respite from the types of negative surprises—like DeepSeek, tariffs, and consumer sentiment—that have tripped it up over the past few weeks," he added.
S&P 500 Opening Bell Heatmap (Feb. 10, 2025)$SPY +0.55% 🟩$QQQ +0.86% 🟩$DJI +0.61% 🟩$IWM +0.49% 🟩 pic.twitter.com/JPDP4d8S9t
— Wall St Engine (@wallstengine) February 10, 2025
Updated at 7:56 AM EST
Kind of Lovin' It
McDonald's posted a weaker-than-expected fourth-quarter earnings report, as well as its biggest biggest decline in U.S. sales in five years, amid a pullback in fast-food spending and an October E.coli outbreak.
McDonald's Q4 same-store sales in the U.S., its biggest market, were down 1.4% from the year-earlier period, the biggest decline since 2020, while overall earnings matched Wall Street's $2.83-a-share forecast.
Still, global sales rose 1%, McDonald's reported, with solid gains in Japan and the Middle East, a tally well ahead of Wall Street's forecast of a 1.1% slide.
“Accelerating the Arches continues to be the right strategy as we focus on growing market share,” said CEO Chris Kempczinski. “We’re playing to win, focusing on our customers with outstanding value, exciting menu innovation and culturally relevant marketing.”
McDonald's shares were last marked 1.3% higher in premarket trading to indicate an opening bell price of $298.11.
$MCD reported earnings results today with a double miss:
— Investing Table (@Investing_Table) February 10, 2025
❌Revenue: $6.39B vs. $6.48B expected
❌EPS: $2.83 vs. $2.86 expected
✅One of the most recognizable brands worldwide, with over 40,000 locations across more than 100 countries.
✅Investments in digital ordering, loyalty… pic.twitter.com/2Py2HV61RK
Stock Market Today
Stocks ended lower on Friday, nudging the S&P 500 into a weekly decline, following comments regarding "reciprocal" tariffs from President Donald Trump, a line he repeated to reporters on Air Force 1 as he headed to watch the Philadelphia Eagles defeat the Kansas City Chiefs in Super Bowl LIX in New Orleans.
Trump also said he would impose a 25% levy on all steel and aluminum products imported into the U.S., to apply as early as this week, while making vague comments about Elon Musk's government efficiency team having found "irregularities" in U.S. Treasuries.
White the prospect of renewed tariffs would likely damage global trade and stoke domestic inflation, markets have become more sanguine in reacting to Trump's various threats, as has been known to either walk them back or use them as a negotiating tactic to achieve different goals.
"With Trump back in the White House, uncertainty and unpredictability are running high," said ING's commodities strategist, Ewa Manthey. "Prolonged trade conflict would slow global growth and hurt demand for industrial metals."
"In 2018, Trump as president "imposed a 10% duty on imported aluminium and a 25% tariff on imported steel to promote domestic metal production," she added. "The duties on Canada and Mexico were lifted a year later after a new free trade agreement between the two countries and the US."
U.S. Steel (X) shares were last marked 8% higher in premarket trading, with Cleveland-Cliffs (CLF) rising 8.6% and aluminum producer Alcoa (AA) up 4.5% on the back of Trump's new tariff plans.
In the bond market, Treasury yields were little changed from Friday's closing levels, despite Trump's remarks that the U.S. "may have less debt than we thought of" following Musk's foray into the Treasury Department, which suggested the potential for targeted defaults on some securities outstanding.
Benchmark 10-year Treasury note yields were last marked at 4.493%, with 2-year notes trading at 4.287%, heading into the start of the New York session as investors eyed Federal Reserve Chairman Jerome Powell's testimony on Capitol Hill this week as well as the Commerce Department's reading of January consumer inflation on Wednesday.
On the earnings front, around 78 S&P 500 companies, including McDonalds (MCD) , CVS Health, (CVS) , Coca-Cola (KO) and Cisco Systems (CSCO) will report December-quarter earnings this week amid a solid reporting season that has topped Wall Street forecasts.
Related: Big tech will spend a staggering amount on AI in 2025
With around three-quarters of the S&P 500 reporting so far, collective profits are on pace to rise 14.8% from the year-earlier period to $544.2 billion, a $20 billion improvement from the early December forecasts.
Heading into the start of the trading day on Wall Street, futures contracts tied to the S&P 500, which is down 0.24% for the month, are priced for a 25-point opening bell gain.
The Dow Jones Industrial Average, meanwhile, is called 161 points higher while the tech-focused Nasdaq is priced for a 135-point advance.
More Wall Street Analysis:
- Goldman Sachs analysts warn on Trump tariff impact for stocks
- Analyst predicts stocks likely to join the S&P 500 in 2025
- Every major Wall Street analyst's S&P 500 forecast for 2025
In overseas markets, Britain's FTSE 100 hit a fresh all-time peak, and was last marked 0.56% higher on the session. Oil major BP (BPAQF) surged 6.4% following news that the activist investor Elliott Investment Management had taken a stake. Europe's Stoxx 600, meanwhile, rose 0.39% in Frankfurt.
Overnight in Asia, Japan's Nikkei 2225 finished 0.04% higher in Tokyo, while the regional MSCI ex-Japan benchmark slipped 0.1% lower into the close of trading.
Related: Veteran fund manager issues dire S&P 500 warning for 2025
