Trump tariff restraint sends markets higher

This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

Trump announces investment in AI infrastructure
President Donald Trump on Tuesday announced a joint venture – Stargate – with OpenAI, Oracle and Softbank invest committing to invest an initial $100 billion and up to $500 billion over the next four years in artificial intelligence infrastructure in the United States.

Trump’s SEC launches ‘crypto task force’
U Securities and Exchange Commission announced Acting President Mark Uyeda has launched a “crypto task force” aimed at “developing a comprehensive and clear regulatory framework for crypto-assets”. The SEC added that the task of the panel will be to develop a clear set of rules and also to deal with the problems related to the registration of coins. The announcement sent Bitcoin up about 2.4% to more than $106,000.

Netflix grows in stellar results, raises prices
Netflix shares rose sharply after the company announced its fourth quarter results which beat revenue and profit expectations and as it surpassed 300 million paid members during the quarter. The company will raising the prices of most of its US plans. It will also raise prices in Canada, Portugal and Argentina.

Markets climb on Trump tariff delay
Actions on Wall Street advanced on Tuesday as investors assessed that Trump’s comments and the actions of the first day around international trade were a little softer than initially thought. The president stopped short of authorizing new withdrawals on his first day back in the Oval Office, sending the Dow Jones Industrial Average more than 500 points, or 1.24%. U S&P 500 gained 0.88%, and the Nasdaq Composite rose 0.64%. In Europe, the pan-European Stoxx 600 closed about 0.4% higher.

[PRO] A bag that makes no sense
The stock market is once again trading close to record highs, but the investment landscape is full of contradictions that are difficult to balance, according to Deutsche Bank macro strategist Henry Allen. He pointed to many parts of the market where investors seem to bet on the most optimistic of possible results, despite some evidence that should be more cautious.

Although he announced that he was “considering” tariffs of 25% on Canada and Mexico, as well as a 10% fee in China. For reference, the 47th president had threatened to impose a global tariff of 10%-20% and a whopping 60% tariff in China on the campaign trail.

Investors seem to have taken Trump’s first day well, with key US benchmarks rising on Tuesday.

“President Trump’s Inauguration Day policy announcements on tariffs were more benign than expected,” Alec Phillips, chief U.S. economist at Goldman Sachs, said in a note. to customers. “For now, it’s a lower priority than we would have expected.”

China, for its part, tried to dissuade Trump on tariffs with Vice President Ding Xuexiang saying at the World Economic Forum in Davos that “Protectionism leads nowhere. [A] the trade war has no winners.”

Ding referred to the speech of Chinese President Xi Jinping in 2017: “Protectionism is like being locked in a dark room. Wind and rain could be kept out, but also light and air.”

The tariffs could dent Trump’s case for a “golden age” for the United States Last year, Morgan Stanley’s chief economist warned that tariffs would push up US growth “significantly” in 2026.

It can be said that with Trump, the tariffs will potentially sow the wind, and reap the whirlwind.

— CNBC’s Alex Harring, Brian Evans, Evelyn Cheng and Lee Ying Shan contributed to this report.