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 is showing 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 strengthening of the US dollar against the Mexican peso and Canadian dollar has been observed, as the Bloomberg Dollar Index reversed earlier losses.
The SPDR S&P 500 ETF (SPY) closed at $605.04, up 0.54% from the previous close of $601.81, and is currently trading at $604.72 as of 16:20 on Thursday, January 30.