S&P 500, Dow Hit Records, Trump Tariffs to Cost Hundreds of Billions | Wall Street Today

The market again hit records Tuesday, reacting mostly positively toward incoming President-Elect Trump's comments overnight that he would put a 25% tariff on our neighbors in Canada and Mexico and 35% on Chinese goods, our three largest trading partners.

According to Census Bureau data, there are price hikes in the goods on 41% of the U.S.'s total imports; there has been $1.6T trade so far in 2024. A blanket 25% tariff would amount to $409B this year in tax revenue. The Canadian and Mexican currencies fell on the dollar.

After the news, the Dow and S&P 500 hit record highs and closing numbers.

Building permit numbers came in right as expected, with 1.410M new permits.

FOMC meeting minutes came out Tuesday afternoon from the Nov. 6th Rate cut decision meeting. Participants voted unanimously for a rate cut, but some said that the committee could pause cutting rates, and some said they should cut more aggressively.

"In discussing the positioning of monetary policy in response to potential changes in the balance of risks, some participants noted that the Committee could pause its easing of the policy rate and hold it at a restrictive level if inflation remained elevated, and some remarked that policy easing could be accelerated if the labor market turned down or economic activity faltered," the minutes continued. "Many participants observed that uncertainties concerning the level of the neutral rate of interest complicated the assessment of the degree of restrictiveness of monetary policy and, in their view, made it appropriate to reduce policy restraint gradually."

All eyes are on Wednesday's PCE release.