U.S. markets are reopening after a holiday, as investors return to trading following developments that emerged while markets were closed. With no trading on Monday due to the Martin Luther King Jr. holiday, markets now need to catch up on trade headlines, early earnings signals, and interest-rate expectations. Here are the key issues investors are watching as trading resumes.
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1. Trade headlines finally hit markets: Over the weekend, President Donald Trump said the U.S. would impose new tariffs linked to Greenland. He announced a 10% tariff on imports from eight European countries starting February 1, with the rate set to rise to 25% by June if no deal is reached to acquire Greenland. The comments came while U.S. markets were closed, delaying any immediate reaction. As trading resumes, investors are watching whether tariff concerns weigh on global stocks, particularly companies with large international exposure.
2. Earnings take the spotlight: With earnings season picking up, company results are expected to play a bigger role in stock moves than broader macro headlines. Several major companies are set to report, including Netflix (NFLX), Intel (INTC), Johnson & Johnson (JNJ), United Airlines (UAL), 3M (MMM), and Charles Schwab (SCHW).
The focus is on company outlooks rather than past results. Investors want to know if Netflix can keep growing subscribers and whether Intel is seeing a pickup in demand. Attention will also be on how Johnson & Johnson’s drug business is holding up, and on what United Airlines, 3M, and Charles Schwab say about costs, margins, and client activity.
3. Interest rates remain a key point: Interest rates remain a key factor for markets. Investors are watching the Federal Reserve closely for any hints on the timing of future rate cuts. If rates stay high for longer, growth stocks could remain under pressure. However, a softer message from the Fed could offer some support to the market.
4. AI and chip stocks remain in focus: AI-related stocks continue to draw attention, though expectations remain high. Chipmakers saw a brief boost last week after strong results from Taiwan Semiconductor Manufacturing (TSM). The company reported a 35% jump in fourth-quarter profit, beating estimates on strong demand for AI chips. Net income rose to NT$505.74 billion (about $16 billion), while revenue increased 25.5% from a year earlier to NT$1.046 trillion ($33.73 billion), also topping expectations.
Now, investors want to see if other tech companies can back up the AI story with real revenue growth, not just optimism.