Trump’s tariff cap lifts markets

This report is from today’s CNBC Daily Open, international markets bulletin. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. As you see? You can subscribe here.

Trump will announce investments in artificial intelligence infrastructure
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Markets rise on delay of Trump tariffs
Stocks on Wall Street advanced on Tuesday as investors assessed Trump’s comments on international trade and his first day’s actions as slightly softer than initially believed. The president stopped short of authorizing new tariffs on his first day back in the Oval Office Dow Jones Industrial Average Up more than 500 points or 1.24%. The S&P 500 It gained 0.88% value Nasdaq Composite It increased by 0.64%. In Europe, all over Europe Stoxx 600 closed about 0.4% higher.

(PRO) Irrational stock market
The stock market is once again trading at record highs, but the investment landscape is full of contradictions that are difficult to balance. Deutsche Bank macro strategist Henry Allen said. He pointed to several parts of the market where they are betting more optimistically on possible outcomes, despite some evidence that investors should be more cautious.

Although he announced that he was “considering” 25% tariffs on Canada and Mexico, 10% tariff to China. For reference, the 47th president on the campaign trail threatened China with 10%-20% global tariffs and 60% tariffs.

Investors seem to have welcomed Trump’s first day With key US indices rising on Tuesday.

“President Trump’s inauguration day tariff policy announcements were more benign than expected,” Alec Phillips, chief U.S. political economist at Goldman Sachs, said in a note to clients. “For now, it’s a lower priority than we expected.”

China, in turn, tried to dissuade Trump from his opinion on tariffs Deputy Prime Minister Ding Xuexiang said At the World Economic Forum in Davos, “Protectionism leads nowhere. (A) trade war has no winners.”

Ding cited Chinese President Xi Jinping’s 2017 speech: “Pursuing protectionism is like locking yourself in a dark room. Wind and rain can be kept outside, but so can light and air.”

The tariffs could undermine Trump’s claim to a “golden age” for the US last year, Morgan Stanley’s chief economist has warned that tariffs will reduce US growth “significantly” in 2026.

One could say that with Trump, the tariffs will potentially sow the wind and reap the whirlwind.

— CNBC’s Alex Harring, Brian Evans, Evelyn Cheng and Lee Ying Shan contributed to this report.