Small Caps Soar, Apple Slips, Treasury Yields Fall On Trump Day 2: What's Driving Markets Tuesday?
Wall Street saw a strong preference for small and mid-cap equities, with the Russell 2000 index leading the market as investors bet on more domestic-friendly policies following Donald Trump's inauguration on Jan. 20 as the 47th U.S. president. The Russell 2000 rallied 1.7%, while other large-cap indices trailed behind. The Dow Jones, composed of non-tech blue-chip companies, rose by 1.2%, while both the S&P 500 and the Nasdaq 100 edged up 0.9%. Most sectors traded higher, except for energy. The announcement of a national energy emergency raised concerns about a fossil fuel oversupply, sending oil prices down more than 2%. WTI crude dropped to $72.10 per barrel. In the Treasury market, yields fell as investors appeared convinced by Trump's pledges on inflation control and lower federal spending. The 10-year Treasury yield declined by five basis points to 4.58%. One of the session's most notable moves came from Apple Inc. AAPL, which plunged 4.3%, marking its worst trading day since early August 2024. The decline followed a downgrade by Jefferies, citing challenges in iPhone sales in China. In commodities, gold climbed 1.2% to a two-month high, aiming for its ninth gain in the past eleven sessions, supported by lower Treasury yields. In the crypto space, Bitcoin BTC/USD rebounded 3% to $106,000 after briefly touching $100,000 overnight amid the absence of crypto-related remarks from Trump on his first day in office. Tuesday’s Performance In Major U.S. Indices, ETFs Major IndicesPrice%Russell 20002,314.891.7%Dow Jones43,995.441.2%S&P 5006,053.000.9%Nasdaq 10021,630.380.9%Updated at 1:20 p.m. ETAccording to Benzinga Pro data: The SPDR S&P 500 ETF Trust SPY rose 0.9% to $602.64. The SPDR Dow Jones Industrial Average DIA rose 1.1% to $439.55. The tech-heavy Invesco QQQ Trust Series QQQ edged 0.8% higher to $525.61. The iShares Russell 2000 ETF IWM rose 1.8% to $229.50. The Industrials Select Sector SPDR Fund XLI outperformed, up 2%; the Energy Select Sector SPDR Fund XLE lagged, down 0.3%. Tuesday’s Stock Movers Charles Schwab Corp. SCHW rallied 4.7%, eyeing the strongest session in over two months, after reporting stronger-than-expected quarterly results. Other stocks reacting to earnings included Prologis Inc. PLD, up 6.4%; 3M Company MMM, up 5.5%; DR Horton Inc. DHI, down 0.4%; KeyCorp KEY, down nearly 5% and Fifth Third Bancorp FITB, up 0.4%. General Motors Co. GM soared by nearly 6% after Deutsche Bank upgraded the stock from Hold to Buy, and raised the price target from $56 to $60. Companies slated to report earnings after the close include Netflix Inc. NFLX, Interactive Brokers Group Inc. IBKR, Capital One Financial Corp. COF and United Airlines Holdings Inc UAL Read Now: Mexican Peso, Canadian Dollar Slide As Trump Threatens 25% Tariffs, Economist Eyes Price Hikes On ‘Typical US Breakfast’ Photo: Shutterstock Market News and Data brought to you by Benzinga APIs© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.