Investing.com -- The S&P 500 and Dow closed at a record highs Tuesday, as investors assessed President-elect Donald Trump's threat to impose higher import tariffs on China, Canada and Mexico.
At 4:00 ET (20:00 GMT), the Dow Jones Industrial Average rose 0.3% to a closing record of 44,860.31. The S&P 500 index gained 0.6% to close at record of 6,021.80,. while the NASDAQ Composite climbed 0.6%.
Trump threatens more tariffs, triggering selloff in autos
Trump said in a social media post on Monday that he will impose a 25% tariff on all imports from Canada and Mexico, citing the inflows of allegedly illegal immigrants and drugs into the US through open borders with the two countries.
He added that he will impose an additional 10% tariff on all Chinese imports, lamenting a lack of progress on China’s part towards curbing the flow of illegal drugs into the U.S.His threat follows promises during his campaign that he will impose a 60% tariff on all Chinese goods.
Automakers including General Motors Company (NYSE:GM), Ford Motor Company (NYSE:F) and Stellantis NV (NYSE:STLA) vulnerable to higher import tariffs fell on Tuesday.
Trump’s tariff threats ramped up concerns over a renewed global trade war between the world’s biggest economies - a trend seen through much of his first term. Such a scenario bodes poorly for global trade, especially for countries with heavy trade exposure to the US.
Investors are also waiting for the release of the minutes from the last Federal Reserve policy-setting meeting later in the session, as they look for clues over whether the central bank will continue cutting rates next month.
Fed minutes show bar still high for pause
Fed members continued to support rate cuts should economic data come in as expected, but many Fed members expressed that uncertainty over neutral rate warrants a gradual approach to monetary policy easing, according to the minutes of the Federal Reserve’s Nov. 6-7 meeting, released Tuesday.
Amgen slips after weight loss drug results underwhelm; Rivian jumps
Amgen Inc (NASDAQ:AMGN) fell more than 4% after the drugmaker reported that is potential weight loss drug Amgen showed that patients in a clinical trial lost up to 20% of their weight falling short of Wall Street expectations of at least 20%.
Rivian Automotive Inc (NASDAQ:RIVN) gave up gains to close 0.6% lower after the electric vehicle maker said that it had received conditional approval for a government loan of up to $6.6 billion to the construction of its EV plant in Georgia and fund production of its midsize EV platform.
Earnings due from retailers
Ahead of that, the retail sector has been in the spotlight as a number of senior companies have reported earnings.
Kohl’s (NYSE:KSS) stock slumped 17% after the retailer cut its annual sales forecast for the third time this year, in a sign the department-store chain is struggling to draw in shoppers ahead of a deal-heavy holiday shopping season.
It also announced its CEO Tom Kinsbury would step down in January, to be replaced by Ashley Buchanan, who currently leads crafts store owner The Michaels Companies (NASDAQ:MIK).
Best Buy (NYSE:BBY) stock fell 5% after the electronics retailer cut its full-year sales forecast as it missed quarterly revenue expectations due to softer demand.
Dick’s Sporting Goods (NYSE:DKS), by contrast, fell 1% after the retailer raised its full-year guidance after what CEO Lauren Hobart called an "excellent" back-to-school shopping season and better-than-expected comparable sales for its third quarter.
Intel (NASDAQ:INTC) stock fell more than 3% after the US Commerce Department said Tuesday it was finalizing a $7.86 billion government subsidy for the tech giant, down from the $8.5 billion announced in March, after the California-based chips maker won a separate $3 billion award from the Pentagon.
(Peter Nurse, Ambar Warrick contributed to this article.)