New York Stock Market Closes Strong Despite Trump’s Additional Tariff Announcement

 

Tech Giants Lead Gains as Steel and Aluminum Stocks Surge

Despite concerns over potential economic impacts from U.S. President Donald Trump’s recent announcement of additional tariffs, the New York Stock Exchange (NYSE) closed on a strong note on February 10 (local time). The market’s resilience was driven primarily by gains in major technology stocks, even as Trump’s tariff threats targeted key import sectors such as steel and aluminum.

The Dow Jones Industrial Average rose by 167.01 points (0.38%), closing at 44,470.41. The S&P 500 climbed 40.45 points (0.67%) to finish at 6,066.44, while the tech-heavy Nasdaq surged 190.87 points (0.98%) to end the session at 19,714.27. This performance reflects investor confidence in growth sectors, particularly technology and semiconductor industries, despite looming trade policy uncertainties.

Trump, speaking aboard Air Force One en route to New Orleans, announced plans to impose a 25% tariff on all steel and aluminum products imported into the U.S. He also hinted that details regarding reciprocal tariffs would be revealed on February 11 or 12. Surprisingly, this announcement sparked a rally in U.S. steel and aluminum stocks, as investors anticipated potential benefits for domestic producers due to reduced foreign competition.

Cleveland-Cliffs, a leading American steel producer, experienced an impressive 18% surge, while Nucor, another major player in the steel industry, saw its shares rise by 5.6%. U.S. Steel also posted a notable gain of 4.8%. In the aluminum sector, Alcoa’s stock increased by 2.2%, reflecting mixed sentiments—while expectations of higher market share buoyed investor confidence, concerns about domestic aluminum price pressures persisted.

While steel and aluminum sectors saw notable gains, their overall weight in the broader U.S. stock market remains relatively small. The driving force behind the market’s strong performance was the robust rebound of semiconductor and large-cap technology stocks. This recovery comes as the market shakes off the recent volatility triggered by Chinese artificial intelligence (AI) startup DeepSeek.

Nvidia, a leading AI chip manufacturer, rose by 2.9%, while other semiconductor giants like Broadcom and Micron posted gains of 4.5% and 3.9%, respectively. These gains underscore the market’s renewed optimism in the tech sector, particularly in AI-related industries, despite the initial shock caused by DeepSeek’s emergence.

Demis Hassabis, CEO of Google DeepMind, sought to temper the hype surrounding DeepSeek during an interview ahead of an international AI summit in Paris. He stated that the company’s developments do not represent groundbreaking scientific progress, suggesting that the excitement around DeepSeek might be somewhat exaggerated. Yann LeCun, Meta’s Vice President and Chief AI Scientist, echoed similar sentiments in a separate interview with French media on February 10, further easing investor concerns about disruptive competition in the AI space.

Fabio Bassi, Head of Cross-Asset Strategy at JPMorgan, reassured investors in a client note, emphasizing that “market volatility surrounding DeepSeek and concerns over tariffs do not alter the positive outlook for U.S. risk assets.” His assessment reflects a broader market sentiment that, despite geopolitical and economic headwinds, the strength of America’s tech and industrial sectors remains resilient.

In summary, the New York Stock Market’s strong close amid Trump’s tariff threats highlights the enduring confidence in U.S. technology and semiconductor sectors. Simultaneously, the unexpected boost in steel and aluminum stocks showcases how protectionist trade policies can create short-term opportunities for domestic industries, even as broader economic uncertainties linger.