Stocks jump as tariffs take backseat to AI
The first trading day of the Trump administration saw more talk about AI than tariffs, fueling a sharp retreat in the US dollar and a rally in stocks.
The S&P 500 gained 0.9%, the Nasdaq 100 rose 0.6%, and the Russell 2000 jumped 1.9%.
Industrials were the best-performing S&P sector ETF; energy was the only decliner.
Reports that the president plans to announce a joint venture for US AI infrastructure dubbed “Stargate,” which includes Oracle, SoftBank, and OpenAI, sent shares of those companies, as well as Nvidia, upward.
Trump’s pledge to put the American flag on Mars drove rocket-esque gains for Rocket Lab USA, Redwire, and Intuitive Machines, among others.
Somewhat ironically, one stock that wasn’t joining in the risk-on party: Trump Media & Technology Group, which slumped double digits.
Moderna surged after receiving a grant in excess of half a billion to develop a bird flu vaccine.
Palo Alto Networks caught a bid after Morgan Stanley reaffirmed its bullish stance on the company.
That’s not to say the 25 executive orders and commentary from the president were uniformly positive for stocks across the board, as electric-vehicle stocks like Tesla, Rivian, and ChargePoint all slumped amid directives that may hurt their top lines. Meanwhile, more traditional, ICE-oriented vehicle companies did well, with General Motors in particular benefiting on the heels of an upgrade from Deutsche Bank.
Apple dropped amid negative analyst company around the company, which has struggled with soft demand in China.
Walgreens Boots Alliance, which was sued by the DOJ at the end of last week, also plummeted.
