On Tuesday, Wall Street experienced a rise, likely in response to President Donald Trump’s return to the White House and his more lenient remarks regarding tariffs, according to economists.

The S&P 500 index concluded the day at its peak since December 17, while the Dow Jones surged to its highest close since December 11.

Leading up to Monday’s inauguration, there were concerns that sweeping tariffs could trigger inflation and hinder economic growth. However, rather than announcing immediate broad tariffs, Trump directed the government to explore various options and approaches, according to a note from Morgan Stanley economists.

Although Trump hinted that 25% tariffs on imports from Mexico and Canada might be implemented by February 1, this timeline is delayed compared to his previous announcement for tariffs to take effect on inauguration day.

In November, Trump indicated he might sign an executive order imposing a 25% tariff on these imports starting January 20. This prompted an urgent visit from Canadian Prime Minister Justin Trudeau to Trump’s Mar-a-Lago estate, where he described their discussions as “excellent.” Mexican President Claudia Sheinbaum also had a positive phone conversation with Trump regarding migration and borders.

As Trump reiterated his tariff threats tied to demands for addressing illegal immigration and drug trafficking, both Mexico and Canada might consider proactive measures to mitigate the potential impact of these tariffs, noted Seemah Shah, Chief Global Strategist at Principal Asset Management.

The S&P 500 closed up by 0.88%, or 52.58 points, finishing at 6,049.24; the Dow climbed by 1.24%, or 537.98 points, to 44,025.81; while the tech-centric Nasdaq increased by 0.64%, or 126.58 points, to 19,756.78. The yield on the benchmark 10-year Treasury dipped to 4.564%.

Oil prices fell by over 2% as Trump continued to advocate for increased drilling and suggested tariffs that might hinder global economic growth.

Tech Stocks Surge

Tech stocks were among Tuesday’s biggest gainers.

Meta, Alphabet, and Amazon all saw their shares rise after their prominent executives attended Trump’s inauguration.

Tesla’s shares dipped slightly but remain up approximately 70% since Trump’s election victory in November, as CEO Elon Musk maintains a close relationship with the new administration. Reports indicate that Musk is set to have an office in the West Wing.

Recently, TikTok briefly went offline due to legislation threatening to ban the app unless it was sold to a non-Chinese company. However, Trump signed an executive order on Monday that paused enforcement of this law for 75 days, although its legal standing remains unclear.

Despite Trump’s executive order, Facebook’s Instagram is reportedly incentivizing TikTok creators to transition to their platform, attempting to capture TikTok’s audience of about 170 million American users, who could be susceptible to moving if TikTok is permanently taken offline.

Cryptocurrency Setbacks?

The price of Bitcoin and other cryptocurrencies declined on Monday as Trump did not issue any executive orders related to crypto nor mention the promised Strategic Bitcoin Reserve.

Before the inauguration, there was speculation that Trump would sign measures to enhance the appeal of cryptocurrencies.

However, Bitcoin did recover somewhat, ending the trading day up about 4% at $106,208.30.

Trump introduced new crypto tokens prior to his inauguration, which initially surged in value to over $10 billion but have since experienced a decrease in value.

Corporate Developments

The earnings season began on a strong note last week with several major U.S. banks posting positive quarterly results. Tuesday brought more corporate news, including:

• Apple’s shares dropped more than 3% following reports of an 18% decline in iPhone sales in China for the last quarter of December. This adds to the evidence of slowing sales for the tech company. Last week, IDC reported a 4.1% decrease in global iPhone unit sales in the same quarter, marking a decline in Apple’s fiscal year.
• Walgreens saw its stock plunge over 9% after the Justice Department accused it of illegally filling prescriptions for addictive medications.
• Charles Schwab, a brokerage firm, reported quarterly results that exceeded Wall Street expectations, aided by the ongoing integration with TD Ameritrade and heightened client activity following the election. Its shares surged nearly 6%.
• Homebuilder DR Horton surpassed earnings estimates, attributing increased demand to customer incentives like mortgage buydowns. However, its shares fell over 2.5% due to ongoing concerns about the housing market and affordability.
• 3M shares rose by 4% after reporting quarterly sales and earnings that surpassed expectations.
• Netflix, after the market closed, delivered results that significantly exceeded analysts’ forecasts, reporting a record addition of 18.9 million subscribers during the holiday quarter. Its shares spiked 10% in after-hours trading.

(This story has been updated with new details.)

Medora Lee is a reporter covering finance, markets, and personal finance.