On Tuesday, the U.Sstock market experienced a notable rally, with both the S&P 500 and the Dow Jones Industrial Average reaching new heights not seen in over a monthThis surge came as investors actively digest the administration's preliminary policy moves, finding comfort in the absence of comprehensive tariffs—a pressing concern as President Biden embarks on his second termDespite listening to the fears of investors, the government may yet impose taxes on goods from Canada and Mexico, but many view the potential tariffs more as leverage in trade discussions rather than as a full-blown policy shift.

By the day's close, the Dow climbed by 537.98 points, or 1.24%, to finish at 44,028.51. The S&P 500 rose by 52.84 points, marking a 0.88% increase to end at 6,049.50. Meanwhile, the Nasdaq Composite gained 126.58 points, or 0.64%, closing at 19,756.78. The Russell 2000, representing small-cap stocks primarily focused on the domestic market, even surged by an impressive 1.85% to conclude at 2,317.97—its highest level since mid-December.

The absence of the proposed tariffs that had initially sparked fears among investors was perceived positively, allowing market participants to breathe a sigh of relief

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Carol Schleif, Chief Market Strategist at BMO Private Wealth, stated, "The lack of mention of tariffs in the initial executive orders is a relief for the market." Investors expressed hope that a more surgical approach would be favored over blunt force tactics when it comes to imposing trade duties.

In the technology sector, notable movements were recordedNvidia and Amazon both saw their stock prices rise over 2%, and Google saw a gain of more than 1%. However, Apple was an outlier, suffering a significant decline of 3.2%, which had a detrimental impact on the S&P 500. Analysts at Jefferies have lowered their ratings on Apple, forecasting that the company's earnings report may fall short of expectations.

The nuclear energy sector also saw a positive uptick, with Oklo share prices soaring by nearly 20% and Vistra Energy climbing over 8%. This enthusiasm was fueled by reports that Energy Secretary nominee Chris Wright intends to prioritize the growth of American nuclear energy production.

In terms of individual stocks, Netflix made headlines by announcing robust fourth-quarter results that exceeded market expectations

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This optimism propelled its share price to a stunning rise of over 14% in after-hours tradingThe company reported revenues of $10.25 billion for the fourth quarter, surpassing a consensus forecast of $10.11 billion, while earnings per share came in at $4.27, beating an anticipated $4.18.

Adding to the excitement, Netflix's streaming service gained a whopping 18.91 million new paid subscribers, catapulting its total subscriber count to an astonishing 301.63 million, far surpassing the anticipated 290.93 millionFurthermore, Netflix raised its guidance for 2025, estimating revenue between $43.5 billion to $44.5 billion, up from the previous forecast of $43 billion to $44 billionIts operating profit margin is now expected to reach around 29%, slightly ahead of earlier projections.

On a different note, Oracle's share price experienced a significant increase of over 7%, buoyed by reports that the newly appointed administration is set to announce a collaborative investment in artificial intelligence infrastructure involving OpenAI, SoftBank, and Oracle itself.

Conversely, Walgreens Boots Alliance faced a setback, with its stock falling by 9% due to allegations from the U.S

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Department of Justice regarding the company’s involvement in issuing illegal prescriptions for addictive medications.

The Nasdaq Golden Dragon China Index ended the day down by 0.36%, reflecting mixed performances among popular Chinese companies listed on U.SexchangesXpeng Motors surged over 6%, and Li Auto saw gains greater than 5%. Conversely, hair loss treatment company New Oriental plummeted over 23%, while rivals like TAL Education and NIO also suffered declines.

During Biden's inaugural year, the S&P 500 saw an impressive ascent of 19.4%. However, uncertainty surrounding the new administration's trade policies has raised flags among analysts, who closely monitor for potential inflation pressures and their broader impact on global trade.

Meanwhile, key inflation figures released last week surprised markets by coming in lower than expectedThis revelation dispelled some of the long-standing fears about the Fed maintaining high interest rates, providing much-needed reassurance to investors.

According to CME Group’s FedWatch Tool, a group of economists widely concurs that the Federal Reserve will likely choose to keep interest rates steady at their upcoming meeting

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