NEW YORK, Feb. 10 (Xinhua) -- U.S. stocks ended higher on Monday, as investors shrugged off the risk that U.S. President Donald Trump's planned steel and aluminum tariffs could ignite a trade war.
The Dow Jones Industrial Average climbed 167.01 points, or 0.38 percent, to 44,470.41, while the S&P 500 rose 0.67 percent to 6,066.44. The tech-heavy Nasdaq Composite led the gains, jumping 0.98 percent to 19,714.27, buoyed by renewed optimism in growth sectors.
Nine of the 11 primary S&P 500 sectors closed in positive territory. Energy stocks surged 2.15 percent amid stabilizing oil prices and geopolitical supply concerns, while technology shares advanced 1.45 percent ahead of key earnings reports this week. Financials and healthcare lagged, dipping 0.79 percent and 0.06 percent, respectively.
Investors had been preparing for retaliatory tariffs after Trump announced plans to impose duties on trading partners. The measures, expected to be finalized by Tuesday or Wednesday, initially sparked unease but failed to derail Monday's stock gains, signaling growing investor acclimation to Trump's aggressive trade strategies.
Analysts suggest that many interpret such moves as bargaining tools rather than immediate economic threats. "Investors are looking at the light at the end of the tunnel," said Jose Torres, senior economist at Interactive Brokers.
Despite the calm, lingering worries persist that escalating tariffs could exacerbate inflationary pressures, potentially delaying anticipated Federal Reserve rate cuts. Attention now turns to Wednesday's Consumer Price Index (CPI) report and retail sales data, which will offer critical insights into inflation trends. Adding to concerns, a New York Federal Reserve survey released Monday revealed consumers' long-term inflation expectations rose to 3 percent -- the highest level since May 2024.
On the earnings front, 78 S&P 500 companies are slated to report this week. McDonald's shares climbed following better-than-expected same-store sales growth, while investors await updates from Coca-Cola, Super Micro Computer, and Airbnb. The mixed corporate landscape underscores a market balancing trade uncertainties with optimism over corporate resilience.
