Last Updated: 4:03 PM EST
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Stock indices finished today’s trading session in the green as investors cheered Donald Trump’s Treasury secretary pick of of billionaire Scott Bessent. Indeed, the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 0.14%, 0.3%, and 1%, respectively.
However, the National Retail Federation (NRF) is worried that Trump’s proposed tariffs on imports could sharply drive up costs for everyday items like clothing, toys, furniture, and appliances. American households could lose $362 to $624 annually in spending power for a total of $46 billion to $78 billion nationwide. Tariff rates could range from 10% to 20% on all imports, with Chinese goods facing as much as 60% to 100% and Mexico potentially seeing a 25% rate if border policies don’t tighten.
The NRF report warns that U.S. retailers wouldn’t be able to absorb these higher costs, which would lead to price hikes that many consumers may struggle to afford. Shoppers could end up paying billions more across key categories: up to $24B more for clothing, $14.2B for toys, $13.1B for furniture, $10.8B for appliances, $10.7B for footwear, and $3.9B for travel goods. Low-income households would feel the impact hardest, as these products make up a larger portion of their after-tax income compared to wealthier households.
The report also emphasized that tariffs are initially paid by American importers, not foreign suppliers, and those costs trickle down to consumers in the form of higher prices. While some producers and the U.S. Treasury might see benefits, the NRF predicts these gains would be far outweighed by losses to consumers and the economy as a whole. Goldman Sachs echoed the concern, stating that across-the-board tariffs could seriously hurt economic growth.
However, it is worth mentioning that Trump does plan to lower taxes elsewhere, and it is unclear if these reports have factored that into their analyses.
First Published: 4:27 AM EST
U.S. stock futures edged higher on Monday morning, indicating a positive start to the holiday-shortened week. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were up 0.46%, 0.59%, and 0.43%, respectively, at 3:41 a.m. EST, November 25.
In Friday’s regular trading session, the Dow Jones closed at an all-time high high, gaining 1%. Also, the S&P 500 and the Nasdaq Composite gained 0.4% and 0.2%, respectively. Furthermore, all three indices ended the previous week in positive territory, buoyed by the post-election rally and positive economic data.
Investor attention is now focused on several key events this week, including the release of the latest Federal Open Market Committee (FOMC) meeting minutes on Tuesday. Also, on Wednesday, the U.S. Personal Consumption Expenditure data will provide insights into the Fed’s future monetary policy decisions.
Additionally, several retailers and tech companies, such as Bath & Body Works (BBWI), Macy’s (M), Zoom (ZM), Best Buy (BBY), CrowdStrike (CRWD), and Dell Technologies (DELL), are scheduled to release their quarterly earnings reports this week.
Investors should also note that the market will remain closed on Thursday for Thanksgiving. Further, the market will open on Friday but will close early at 1:00 p.m. in observance of Black Friday.
Meanwhile, the U.S. 10-year treasury yield was down at the time of writing, floating near 4.337%. At the same time, WTI crude oil futures trended lower, hovering near $70.57 per barrel as of the last check.
Elsewhere, European markets opened higher today. On the economic front, the eurozone will release the Consumer Price Index (CPI) for November, which can influence the European Central Bank’s (ECB) future interest rate decision.
Asia-Pacific Markets Traded Mixed on Monday
Asia-Pacific indices were mixed today as traders assessed the People’s Bank of China’s decision to keep its one-year medium-term lending facility rate unchanged at 2%. Also, investors are looking forward to China’s industrial data and the November inflation report from Japan.
Hong Kong’s Hang Seng index was down 0.41%. Also, China’s Shanghai Composite and Shenzhen Component indices declined 0.11% and 0.17%, respectively. However, Japan’s Nikkei and Topix indices finished higher by 1.3% and 0.71%, respectively.
Interested in more economic insights? Tune in to our LIVE webinar.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
