Last Week of January, Tariffs on the Way

Ahead of the U.S. implementing tariffs on Canada, Mexico and China starting February the stock market saw a volitile Friday. Companies that do more international business were hit the hardest. Apple(APPL) for one, was down $1.59 Friday. Apple is also a concerning position now due to the continued Chinese demand. Nvidia(NVDA) was down hard again, almost 4% to $120.07. Is this down due to AI competition or possibly a downturn due to tariff factors. 

If the tariffs occur, Canada and Mexico would see a 25% hit along with China seeing a 10% rate. Currency trades should be all over the place next trading week. The Dollar could see some strength while a dip may happen in the Canadian Dollar and Peso. We’ll see how the overnight trade reacts in China Sunday evening. Friday the dollar index rose, showing some foreshadow of the shift. 

The next five days should be telling for the short-term trade and potentially international trade for the path of Q1. Inflation will be monitored as data continues to come in little changed. Earnings will also play a large factor in the near days. Look to economic data and the Fed to play a bigger part in the long-term outlook of the stock market. 

Commodities on the other hand will move on their own. Oil will see some volatility following the tariffs being imposed as will the metals. 

Disclaimer: Past performance is not indicative of future returns. Opinions are my own. Profitable trades are not guaranteed.