The announcement of 25% tariffs on Canada and Mexico by President Trump has introduced uncertainty into the markets, particularly impacting sectors like US automakers due to potential disruptions in cross-border trade. Despite these geopolitical tensions, the US economy has shown resilience, with consumer spending advancing at a 4.2% pace and weekly jobless claims coming in below estimates. This economic stability suggests that the Federal Reserve might maintain its current interest rate levels for an extended period. Meanwhile, the S&P 500 Index has experienced a modest increase, driven by the market's reaction to the tariff announcement and strong consumer spending and employment data.
The iShares Core S&P 500 ETF (IVV) closed at $607.89, up 0.49% from its previous close of $604.91, and is currently trading at $607.70 as of 16:20 on Thursday, January 30.