NEW YORK (AP) 鈥� U.S. stocks closed at more records after Donald Trump鈥檚 latest talk about tariffs created only some ripples on Wall Street. The S&P 500 rose 0.6% to reach another all-time high. The Dow Jones Industrial Average added 0.3% to its own record set the day before, while the Nasdaq composite rose 0.6% as Big Tech stocks helped lead the way. Stock markets abroad saw mostly modest losses, after President-elect Trump said he plans to impose sweeping tariffs on Mexico, Canada and China as soon as he takes office. U.S. automakers and other companies that could be hurt particularly by such tariffs fell.
THIS IS A BREAKING NEWS UPDATE. AP鈥檚 earlier story follows below.
NEW YORK (AP) 鈥� U.S. stocks are rising toward records Tuesday after created only some ripples on Wall Street, even if they could were they to take effect.
The S&P 500 climbed 0.5% and was on track to top its set a couple weeks ago. The Dow Jones Industrial Average added 81 points, or 0.2%, to set the day before, while the Nasdaq composite was 0.5% higher, with less than an hour remaining in trading.
Stock markets abroad were down, but mostly only modestly, after President-elect Trump said he on Mexico, Canada and as soon as he takes office. Stock indexes were down 0.1% in Shanghai and nearly flat in Hong Kong, while Canada's main index edged down by just 0.1%.
Trump has often praised the , but investors are weighing whether his latest threat will actually become policy or is just an opening point for negotiations. For now, the market seems to be taking it more as the latter.
Unless the United States can prepare alternatives for the autos, energy products and other goods that come from Mexico, Canada and China, such tariffs would raise the price of imported items all at once and make households poorer, according to Carl Weinberg and Rubeela Farooqi, economists at High Frequency Economics. They would also hurt profit margins for U.S. companies, while raising the threat of retaliatory tariffs by other countries.
General Motors sank 8.2%, and Ford Motor fell 2.6% because both import automobiles from Mexico. Constellation Brands, which sells Modelo and other Mexican beer brands in the United States, dropped 3.9%.
Beyond the pain such tariffs would cause U.S. households and businesses, they could also push the Federal Reserve to slow or even halt its cuts to interest rates. The Fed had just begun from a two-decade high a couple months ago to offer support to the . While lower interest rates can boost the overall economy and prices for investments, they can also offer more fuel for inflation.
鈥淢any鈥� officials at the Fed's earlier this month said they should lower rates gradually, according to released Tuesday afternoon.
Unlike tariffs in Trump's first term, his proposal from Monday night would affect products across the board.
Trump鈥檚 tariff talk came almost immediately after U.S. stocks rose Monday amid excitement about his pick for Treasury secretary, Scott Bessent. The hope was the hedge-fund manager could steer Trump away from policies that balloon the U.S. government deficit, which is how much more it spends than it takes in through taxes and other revenue.
The talk about tariffs overshadowed another set of mixed profit reports from U.S. retailers that answered few questions about how much more shoppers can keep spending. They鈥檒l need to stay resilient after helping the economy avoid a recession, despite the high interest rates instituted by the Fed to get inflation under control.
tumbled 17.6% after its results for the latest quarter fell short of analysts鈥� expectations. CEO Tom Kingsbury said sales remain soft for apparel and footwear. A day earlier, Kingsbury said he plans to step down as CEO in January. Ashley Buchanan, CEO of Michaels and a retail veteran, will replace him.
fell 4.7% after likewise falling short of analysts鈥� expectations. Dick鈥檚 Sporting Goods topped forecasts for the latest quarter thanks to a strong back-to-school season, but its stock lost an early gain to fall 1.4%.
A report on Tuesday from the Conference Board said improved in November, but not by as much as economists expected.
J.M. Smucker jumped 5.4% for one of the biggest gains in the S&P 500 after topping analysts' expectations for the latest quarter. CEO Mark Smucker credited strength for its Uncrustables, Meow Mix, Caf茅 Bustelo and Jif brands.
also helped prop up U.S. indexes. Gains of 2.8% for Amazon and 2% for Microsoft were the two strongest forces lifting the S&P 500.
In the bond market, Treasury yields rose following their big drop from a day before driven by relief following Trump鈥檚 pick for Treasury secretary.
The yield on the 10-year Treasury climbed to 4.30% from 4.28% late Monday, but it鈥檚 still well below the 4.41% level where it ended last week.
In the crypto market, bitcoin continued to pull back after late last week. It's since dipped back toward $91,600, according to CoinDesk.
It鈥檚 a sharp turnaround from the following Trump鈥檚 election. That boom had also appeared to have spilled into some corners of the stock market. Strategists at Barclays Capital pointed to stocks of unprofitable companies, along with other areas that can be caught up in bursts of optimism by smaller-pocketed 鈥渞etail鈥� investors.
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AP Business Writer Elaine Kurtenbach contributed.
Stan Choe, The Associated Press
