In This Article:
US stocks (^DJI, ^IXIC, ^GSPC) ended Monday's trading session higher in positive territory in spite of any market headwinds anticipated from President Trump's steel and aluminum tariff plans.
Yahoo Finance markets and data editor Jared Blikre comes on Asking for a Trend to recap several of the day's most notable trading themes, including the price action in coffee (KC=F), copper (HG=F), and gold (GC=F) futures and Chinese-exposed stocks.
To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here.
This post was written by Luke Carberry Mogan.
Well, US stocks closed the day higher. The S&P 500 and Nasdaq led the rally as Nvidia shares jumped. Yahoo Finance's Jared Blickre joins us now with the trading day takeaways. Jared
Thank you, Josh. First takeaway is stocks are now discounting tariffs. In fact, if you remember the last two Mondays, we were recovering from some pretty steep overnight losses. Two weeks ago, it was deep, deep seek. A week ago, it was the tariffs announcement. Excuse me. To be fair, we had some more tariff announcements Friday. However, they did not carry through. So we had a pretty positive day. I'm going to go through the sector action here and, uh, let's pull up our sectors. And we can see two of the best performing sectors of the year. This is going to be health care and and also financials. Those ended in the red today. And now I'm going to show you 15 days since the election. Communication services, we were talking about health care last time, excited about that. Maybe staples, real estate, financials, you put it all together, we've had a pretty, uh, a really interesting rotation since the inauguration. We're going to get into that with some of the commodities and whatnot.
Yeah, that's what else was risk on today that you saw?
All right. So we got to go straight to the commodities. I'm going to head to our futures, and this is again since the inauguration. KC, guess what? That's coffee. That is up 22% in these 15 days. I'm going to show you a chart right here. These are record highs. Um, I'm wondering when my cup of coffee is going to cost $10 in the morning. This is what we've seen over the last couple months. That is a potential catalyst for what I'm talking about here. We haven't seen these prices before. So coffee futures are exploding. We're also seeing copper. Copper is up six days straight. Now, this is a five-year chart. You're going to say, is that a big deal? It actually is. If we take a look at the one year, you're going to see it's a bit it's a bit more protracted or a bit more, uh, bigger jump than what we were looking at before. And I think it's critical too, because once copper starts taking off, I'm going to show you a two-month chart, and let's look at some of these candles. These candles are getting bigger. Anytime you see that in commodities, and we've seen it with coffee too, that means this thing is just kind of exploding to the upside. You have a very, very volatile sessions in commodities. You can have a situation where they move limit up. In other words, you can't go anymore, and then they move limit up day after day after day. So that's copper. Also want to show you gold, which has been hitting record highs very recently. In fact, today we hit another record high, gold. And that was kind of my lead into this segment, gold nearing $3,000 an ounce. So we put it all together, we've seen fits and starts, and now we're starting to see, uh, more dramatic movement in the futures here.
Weren't we just talking copper, Jared Blickre, the red metal, what it means for China? Weren't we just wasn't that just a blickre point?
Yes, it was. It was Friday. We were talking about China. We were talking about healthcare as well. We even talked a little bit about Europe. But today, the copper talk makes me want to look at China again. So we're going to go back to China. Uh, I talk a lot about China, and I also like to mention that a lot of analysts and strategists have said that it's uninvestable. And this is because the Chinese government has performed so many rug pulls over the years, not only to recently IPOed stocks like Didi, but also established stocks like Alibaba. But here we have look at this green board. This is the 15 days since the inauguration. I think this is a little bit of a surprise because people think Trump, well, we're not going to see a green board with respect to China. And I'm going to show you something else here. If we take a look at our leaders in these 15 days, Kweb, that's the Chinese internet ETF, that is the best performer of all of these leaders, even crypto. Crypto's in the in the red there, but that beats gambling, it beats software, it beats the arc components, momentum, all of this stuff. Emerging markets seems to be a thing in these 15 days since we, uh, have seen trup.
So all in on China?
Yes. China, EM, who would have thought?
Who would have thought. Thank you, buddy. Appreciate it.
Got it.
