Markets React to Trump’s Inauguration: Energy, Tech, and Housing in Focus
The U.S. markets were active following President Donald Trump’s inauguration, with investors closely watching the administration's early policy announcements. Here are the key highlights:
Trump also declared a national energy emergency, swiftly revoking the previous administration’s pause on new liquefied natural gas (LNG) permits. According to Rystad Energy, this policy aims to accelerate domestic oil and gas production.
Despite the announcements, West Texas Intermediate (WTI) crude oil dropped 2.3%, closing at $76.09 per barrel on Tuesday.
The U.S. markets were active following President Donald Trump’s inauguration, with investors closely watching the administration's early policy announcements. Here are the key highlights:
Trump's Policy Direction: Strategic Tariffs and Energy Emergency
In his inaugural address, President Trump outlined plans for higher tariffs and stricter immigration controls. However, analysts at Stifel believe the administration will adopt a measured approach to tariffs, implementing them more tactically to secure better trade deals, address immigration concerns, or deter military conflicts.Trump also declared a national energy emergency, swiftly revoking the previous administration’s pause on new liquefied natural gas (LNG) permits. According to Rystad Energy, this policy aims to accelerate domestic oil and gas production.
Despite the announcements, West Texas Intermediate (WTI) crude oil dropped 2.3%, closing at $76.09 per barrel on Tuesday.
Market Movers: Tech and Industrials Take the Spotlight
- Netflix (NFLX):
Shares soared over 10% in after-hours trading as the streaming giant reported a strong Q4 performance, adding 18.9 million users and exceeding revenue and earnings expectations. Netflix also announced a $15 billion stock buyback and raised its 2025 revenue projection to $43.5-$44.5 billion, up from its earlier estimate of $43-$44 billion. - 3M (MMM):
The industrial conglomerate’s better-than-expected Q4 earnings and optimistic 2025 outlook drove its stock up 4.2%, making it the top gainer on the Dow Jones Industrial Average. - Apple (AAPL):
The tech giant faced headwinds as iPhone sales in China reportedly declined by 18% in Q4, according to Bloomberg News, citing independent research.
Economic Insights: Housing and Commodities on the Rise
- Housing Market:
U.S. home prices recorded their largest annual increase in almost a year as December marked the first time since May 2022 that all 50 of the largest metropolitan areas tracked by Redfin saw year-over-year gains. - Gold and Silver:
Precious metals saw modest gains, with gold rising 0.3% to $2,755.80 per troy ounce and silver advancing 1.1% to $31.49 per ounce.
Bond Market Update
The U.S. 10-year Treasury yield fell 3.5 basis points to 4.58%, while the 2-year yield held steady at 4.28%, reflecting investor caution amid the administration’s early days.Key Takeaways:
- Markets are responding positively to a cautious approach to tariffs and a strong energy agenda.
- Tech and industrial stocks are gaining momentum, driven by strong earnings and growth forecasts.
- The housing market shows signs of recovery, while precious metals remain stable amid policy uncertainty.