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 shows 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 shown a modest increase, reflecting the market's mixed reaction to the tariff news and underlying economic strength.
The Vanguard S&P 500 ETF (VOO) closed at $556.30, up 0.52% from its previous close of $553.41, and is currently priced at $556.08 as of 16:20 on Thursday, January 30.