The U.S. New York Stock Exchange closed mixed on the 25th (local time). Technology stocks rebounded ahead of the earnings announcement from artificial intelligence (AI) stronghold Nvidia, but traditional stocks fell due to worries about tariffs against Canada and Mexico. The Standard & Poor's (S&P) 500 index and the Nasdaq index managed to rebound after four consecutive days of decline, while the Dow index turned lower after rising for two consecutive days.
On this day, the large-cap S&P 500 index on the New York Stock Exchange (NYSE) closed at 5,956.06, up 0.81 points (0.01%) from the previous day. The technology-focused Nasdaq index finished 48.88 points (0.26%) higher at 19,075.26. The Dow Jones Industrial Average closed at 43,433.12, down 188.04 points (0.43%) from the previous trading day.
The U.S. House of Representatives voted the night before to pass a budget resolution focused on significant tax cuts, expenditure reductions, and increasing the liability ceiling, with a vote of 217 to 215. This resolution contains provisions to extend and expand the effects of the Trump administration's first-term tax cut law (TCJA), which is set to expire at the end of this year. The expectation that reductions in personal income tax and corporate tax would increase consumer capacity and corporate investment led to a rise in stock prices.
However, uncertainties regarding President Donald Trump's trade policies and tax cut policies caused the stock market to fluctuate again. Trump said during his first cabinet meeting held on this day that tariffs on Canada and Mexico would take effect. He also declared that he would soon expand the trade war by imposing a 25% tariff on European Union (EU) products.
Liz Ann Sonders, chief investment strategist at Charles Schwab, noted in an interview with CNBC, "Policy uncertainty has had an impact," adding that "we can actually see declines in intentions to purchase high-priced items, intentions for capital expenditure, and expenditure plans."