Key Takeaways

• The S&P 500 added 0.6% on Tuesday, Nov. 26, as investors weighed the implications of President-elect Donald Trump's promise to impose new tariffs on Mexico, Canada, and China.

• General Motors shares sank on the tariff news, as the automaker has a significant manufacturing footprint in Canada and Mexico.

• Shares of electricity generator NRG Energy soared as Jefferies analysts upgraded the stock, highlighting cross-selling opportunities.

Major U.S. equities indexes ticked higher as investors weighed the implications of President-elect Donald Trump's promise to impose new tariffs on Mexico, Canada, and China.

In addition, the minutes from this month's Federal Reserve meeting revealed that policymakers foresee more interest-rate cuts ahead but intend to take a cautious approach and respond to any indications of persistent inflation.

The S&P 500 added 0.6% Tuesday. The Dow traded in negative territory for much of the day but gained ground in the afternoon to end 0.3% higher. The tech-heavy Nasdaq was up 0.6%.

Tuesday's top performance in the S&P 500 belonged to shares of electricity generator NRG Energy (NRG), which surged 10.1% after Jefferies upgraded the stock to "buy" from "hold" and lifted its price target. Analysts pointed to improved expectations for NRG's cross-selling opportunities. They also increased their estimates for earnings before interest, taxes, depreciation, and amortization (EBITDA) as they accounted for the company's growth plans.

Shares of fellow power producer Constellation Energy (CEG) jumped 7.2% as the firm requested that U.S. regulators fast-track a review process to update rules related to connecting power plants directly with onsite data centers. The "co-location" of plants and data centers has been the subject of criticism, given potential risks to the reliability of surrounding power grids. Constellation, the largest operator of nuclear power plants in the U.S., said the unclear regulatory framework for co-location has impeded its plans to develop data centers adjacent to its power plant sites.

J.M. Smucker (SJM) shares jumped 5.7% after the food maker reported better-than-expected quarterly profits and boosted its full-year guidance. The company said robust demand for packaged and frozen foods, as well as higher coffee prices, helped drive the strong performance. However, Smucker expects a slump in convenience store traffic to weigh on sales for Hostess, the snack cake brand it acquired roughly a year ago.

In government news Tuesday, the Biden administration recommended that weight-loss drugs be covered under Medicare and Medicaid. The proposed changes would make popular anti-obesity treatments accessible to millions of additional patients in the U.S. starting in 2026. While costs for government health care programs would increase, there is a growing consensus that obesity is a chronic health condition that causes other ailments like diabetes and heart disease. Shares of Eli Lilly (LLY), maker of blockbuster GLP-1 agonists Zepbound and Mounjaro, gained 4.6% on Tuesday.