Tech Stocks Rise Despite Trade Tensions and Tariff Talks

On Tuesday, the S&P 500 and Nasdaq saw gains, primarily due to tech stocks, while markets reacted to policy announcements by Donald Trump about tariffs on imports. Although some viewed the tariff threats as strategic negotiation tactics, they stoked concerns about potential trade wars and inflation pressures.

The benchmark S&P 500 and Nasdaq posted gains on Tuesday, buoyed by a rebound in technology stocks. Investors are closely watching policy moves, including President Donald Trump's conditional tariff threats on Canadian, Mexican, and Chinese imports, and the anticipation of Federal Reserve meeting minutes.

President-elect Trump has pledged a 25% tariff on Canadian and Mexican imports that may breach a previously negotiated free-trade agreement. A further 10% tariff on Chinese imports raises trade war concerns, impacting sectors like automotive with Ford and General Motors seeing stock declines of 2.8% and 7% respectively.

Markets were mixed; the S&P 500 touched a record high on Monday and logged its sixth-straight session of gains. Analysts express caution, noting the potential inflationary effects of Trump's trade policies, while Federal Reserve interest rate decisions continue to influence market expectations.

(With inputs from agencies.)