Dow Jones Today: Market Volatility as U.S.-China Trade War Escalates—Palantir Soars 25% Amid AI Boom
Stock Market on Edge: Will the US-China Trade War Shake Global Markets?
Dow Jones Today: Market Volatility as U.S.-China Trade War Escalates—Palantir Soars 25% Amid AI Boom
Stocks opened mixed on Tuesday as investors closely monitored the latest trade developments and corporate earnings reports. The Dow Jones Industrial Average slipped 0.2%, while the S&P 500 edged up 0.2%, and the Nasdaq Composite climbed 0.5%.
This comes after Monday’s selloff, driven by President Trump’s decision to impose tariffs on key trade partners. Over the weekend, Trump signed executive orders enforcing tariffs on China, Canada, and Mexico, with 10% duties on Chinese imports taking effect immediately. However, a 30-day delay was granted for the 25% tariffs on Canada and Mexico. In response, China announced retaliatory tariffs on several U.S. products, set to begin next week.
Palantir Surges 25% on AI Demand—Tech Stocks Show Mixed Performance
Palantir (PLTR) shares skyrocketed 25% after the company reported stronger-than-expected Q4 earnings and issued a bullish outlook, fueled by the surging demand for AI-driven analytics. Spotify (SPOT) also gained 12%, following a solid earnings report highlighting robust revenue and subscriber growth.
However, not all stocks saw gains. Merck (MRK) tumbled 11%, leading the Dow and S&P 500 losers, after posting a disappointing outlook. Estee Lauder (EL) plunged 12%, while PepsiCo (PEP) dipped 2% after revealing their quarterly results.
In the technology sector, AI chipmaker Nvidia (NVDA) rebounded 1.5% after a tough week, following news that Chinese startup DeepSeek had developed a low-cost, high-performance AI model, threatening Nvidia’s dominance. Amazon (AMZN), Alphabet (GOOGL), and Tesla (TSLA) all posted slight gains, while Apple (AAPL), Microsoft (MSFT), Meta Platforms (META), and Broadcom (AVGO) saw modest declines.
Investors are now eyeing Alphabet’s earnings report, due after today’s closing bell, while Amazon will report on Thursday.
Treasury Yields, Bitcoin, and Commodities—Market Indicators to Watch
The 10-year Treasury yield climbed to 4.56%, up from Monday’s close of 4.54%, reflecting shifting expectations on interest rates.
Meanwhile, Bitcoin slipped to $99,900, after briefly touching $102,500 overnight. Gold futures gained 0.5%, trading around $2,870 per ounce, while WTI crude oil prices fell over 2%, reaching their lowest levels in 2025.
Will the U.S.-China Trade War Sink Global Markets?
With tensions escalating between Washington and Beijing, investors are left wondering:
Could the ongoing trade war spark a major stock market downturn?
Will AI-driven demand offset the broader market risks?
How will China’s retaliatory tariffs impact U.S. industries?
As Wall Street navigates these uncertainties, traders are bracing for further volatility in the weeks ahead.
📌 Follow the latest updates here:
🔗 Reuters: Dow Jones and Nasdaq react to U.S.-China tariffs
🔗 WSJ: Stock Market Live Coverage
🔗 Business Insider: DeepSeek shakes up AI industry
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