Dow Jones Reaches Record High Amid Tariff Concerns

The major stock indexes surged higher on Tuesday.

On November 26, 2024, the Dow Jones Industrial Average closed at an all-time high, achieving this milestone shortly after President-elect Donald Trump announced his plan to impose tariffs. This move ignited fears of a potential panic in the stock markets.

The S&P 500 also hit a record high, increasing by approximately 0.55% and closing at 6,021.63. The Dow itself rose about 0.25% during the trading session, finishing the day at 44,860.31.

The Nasdaq, which focuses heavily on technology stocks, climbed around 0.60% and ended the day at 19,174.30.

This upward trend in trading began just hours after Trump revealed his intention to impose tariffs on imports from Canada, China, and Mexico starting on the first day of his administration. Specifically, Trump stated he would implement a 25% tariff on all goods entering the United States from Mexico and Canada until those nations take action to curb illegal immigration and drug trafficking.

As for China, Trump announced he would introduce a 10% tariff on products imported from that country.

Economists have expressed concerns, indicating that such high tariffs would likely lead to increased prices for U.S. consumers, as businesses generally pass on part of the cost of tariffs to buyers. According to the Peterson Institute for International Economics, the average household in the U.S. could face an added cost of about $2,600 annually due to these tariffs.

Regardless of these concerns, the major stock indexes experienced gains due to solid performances from leading companies in the market.

Apple, known for manufacturing many of its products in China but benefiting from significant tariff exemptions during Trump's previous term, saw its stock rise by 0.12%. Meanwhile, Nvidia, a prominent AI chipmaker that source most of its semiconductors from Taiwan, increased by 0.66% during the trading session.

On the other hand, Tesla, the electric vehicle manufacturer led by Elon Musk, who is an ally of Trump, saw a slight decline of 0.11% in its shares. Tesla has a manufacturing plant in Shanghai, China.

Contributions to this report were made by Lalee Ibssa, Kelsey Walsh, and Soo Rin Kim.

Stocks, Tariffs, Economy