• Wall Street stocks surge, driven by a rebound in technology stocks and investors digesting President-elect Donald Trump's tariff threats and Federal Reserve minutes.
• Trump's tariff threats on Canadian, Mexican, and Chinese imports impact automakers Ford and General Motors, causing a drop in shares.
• The Dow Jones, S&P 500, and Nasdaq Composite see gains, with Microsoft and Apple boosting the tech sector.
• Investors and market participants closely watch unfolding events, including Federal Reserve decisions, tariff threats, and key stock performances, shaping the future of the markets.

The recent surge in Wall Street stocks, led primarily by the S&P 500 and the Nasdaq, has been driven by a rebound in technology stocks. Investors are currently digesting the implications of President-elect Donald Trump's tariff pledges on top trade partners and the latest minutes from the Federal Reserve. The Federal Reserve's latest minutes have shown a division among officials regarding the need for further cuts in interest rates. These minutes, from the meeting held on November 6-7, also revealed a consensus among the group to avoid providing concrete guidance about the likely evolution of U.S. monetary policy in the upcoming weeks.

Jamie Cox, the managing partner for Harris Financial Group, stated, The minutes did nothing to alter my view that the policy rate is going to be adjusted lower next week and will continue to do so through the next calendar year. However, other analysts have expressed more caution. Paul Ashworth, the chief North America economist for Capital Economics, noted that he still expects another 25 basis-point cut. However, he cautioned that such decisions are data-dependent and therefore, November's employment and inflation data will be pivotal.

In an overnight development, Trump announced his intention to impose a 25% conditional tariff on Canadian and Mexican imports that could violate a free-trade deal he negotiated during his previous term. He also outlined an additional 10% tariff, above any additional tariffs on imports from China, thereby increasing the risk of trade wars.

Impact on Automakers and Tech Giants

This news had a significant impact on automakers Ford and General Motors, both of which saw a drop in their shares due to their highly integrated supply chains across Mexico, the U.S., and Canada. GM shares plunged nearly 9%. Robert Pavlik, senior portfolio manager at Dakota Wealth, expressed his concern, stating, The concern is that some products are going to become more costly and that will mean revenue for those companies that are possibly manufacturing those goods overseas is going to decline.

The Dow Jones Industrial Average rose 123.74 points, or 0.28%, to 44,860.31, the S&P 500 gained 34.26 points, or 0.57%, to 6,021.63 and the Nasdaq Composite gained 119.46 points, or 0.63%, to 19,174.30. These gains were primarily driven by megacaps such as Microsoft and Apple, which boosted the information technology sector and the tech-heavy Nasdaq. Microsoft shares rose a little over 2%.

Wells Fargo stood out among sluggish banking stocks, rising 0.6% after Reuters reported that the bank is in the last stages of a process to pass regulatory tests to lift a $1.95 trillion asset cap next year after fixing problems from its scandal over fake accounts.

Market Fluctuations and Future Outlook

However, the blue-chip Dow was weighed down by declines in Amgen, which slid about 4.8% after its experimental obesity drug fell short of expectations. The S&P 500 touched a record high on Monday and logged its sixth-straight session of gains, while the Russell 2000 also scaled an all-time high after three years. On the day, the small-cap index fell 0.7%.

Among others, Eli Lilly rose 4.6% after U.S. President Joe Biden proposed expanding Medicare and Medicaid coverage for anti-obesity drugs. Declining issues outnumbered advancers by a 1.57-to-1 ratio on the NYSE. There were 358 new highs and 52 new lows on the NYSE. The S&P 500 posted 63 new 52-week highs and 3 new lows while the Nasdaq Composite recorded 124 new highs and 91 new lows.