US stocks rally as Trump tempers auto tariffs
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Traders working on the floor of the New York Stock Exchange, at the opening bell in New York on April 29.
PHOTO: AFP
NEW YORK - Wall Street stocks rose on April 29 as markets digested mixed earnings while applauding a move by President Donald Trump to ease tariffs on automakers.
Mr Trump’s pivot includes limitations on the impact of multiple tariffs on carmakers and a measure to allow carmakers to offset a portion of the levy for two years.
Investors are “encouraged by the Trump decision to be a little more flexible (...) with the autos,” said Mr Sam Stovall, of CFRA Research.
The Dow Jones Industrial Average finished 0.8 per cent higher at 40,527.62.
The broad-based S&P 500 advanced 0.6 per cent to 5,560.83, while the tech-rich Nasdaq Composite Index rose 0.6 per cent to 17,461.32.
Stocks moved sideways on April 28 after notching four straight positive sessions last week as Mr Trump adopted a more conciliatory posture on the trade war with China and said he doesn’t plan to fire Federal Reserve chairman Jerome Powell.
Mr Stovall predicted stocks could go higher.
“There’s definitely uncertainty, but I believe that the risk is to the upside, meaning that the market has already priced in the impact of the tariffs,” he said.
Among automakers General Motors fell 0.6 per cent, Ford rose 1.3 per cent and Stellantis gained 2.5 per cent.
Among companies reporting earnings, Honeywell International jumped 5.4 per cent, Coca-Cola advanced 0.8 per cent and Pfizer won 3.2 per cent while UPS shed 0.4 per cent. AFP
