By Alex Financials

The U.S. stock market exhibited minimal movement following President Donald Trump’s announcement of 25% tariffs on foreign steel and aluminum. The S&P 500 remained almost unchanged, while the Dow Jones Industrial Average rose by 42 points, and the Nasdaq Composite fell by 0.1%. Treasury yields showed minor increases, reflecting modest activity in the bond market.

These tariffs, seen as potential negotiation leverage rather than long-term policy, pose the risk of a trade war, with the European Union already warning of proportionate countermeasures. Meanwhile, Federal Reserve Chair Jerome Powell indicated no immediate plans to alter interest rates, which could affect future expectations for rate cuts. Despite these uncertainties, several U.S. companies reported strong profits, including Coca-Cola and DuPont. However, Marriott International’s forecasted profit range fell short of expectations. Global markets displayed mixed reactions, with some concerns over ongoing U.S.-China trade tensions.

BP Shares Surge Amid Activist Investor Interest

BP plc (BP) experienced a significant share price increase of over 6% after reports emerged that Elliott Management, a prominent activist hedge fund, has acquired a stake in the company. This move has led to speculation about potential strategic changes, including a possible division or complete sale of BP. The timing is critical for BP’s CEO, Murray Auchincloss, who is already facing investor frustration due to the company’s underperformance in the stock market. BP is scheduled to report its fourth-quarter earnings soon, with expectations of a decline compared to the previous year.

Nasdaq Private Market Eyes European Expansion

Nasdaq Private Market (NPM) is considering expanding into Europe to capitalize on the growing demand for private company share trading. CEO Tom Callahan has discussed potential regulatory collaborations in Europe, highlighting the appetite for creating liquidity platforms for private companies. This move comes as private share trading becomes an alternative to public offerings, with European companies increasingly turning to American venture capital and stock exchanges. NPM has facilitated $60 billion in secondary transactions and is exploring private IPOs to provide liquidity.

Retail Investors Influence Market Dynamics

Retail investors have been significantly influencing Wall Street, creating challenges for larger institutional investors who are eager to buy during market dips. According to Scott Rubner, a Goldman Sachs strategist, an unprecedented surge in retail investing has altered market dynamics. This shift was evidenced by substantial buying imbalances, the highest recorded since 2019. High retail demand, particularly for influential stocks like Nvidia (NVDA) and Tesla (TSLA), along with significant corporate buybacks, are key factors preventing deeper market declines. Rubner anticipates a robust year, predicting companies in the S&P 500 and Russell 3000 will repurchase a historic $1.16 trillion in stock, further bolstering the market.

Nikola Corp. Stock Outperforms Market

Nikola Corporation (NKLA) saw its stock rise by 13.2%, closing at $0.50, outperforming the general market. This increase comes as part of a favorable trading day where major indices like the NASDAQ Composite and the Dow Jones Industrial Average also saw gains. Despite this positive session, Nikola’s stock remains significantly lower than its 52-week high of $34.50, achieved on April 1st, sitting currently 98.5% below that peak. The trading volume for Nikola was notably higher, with 31.4 million shares traded, surpassing the 50-day average of 15.0 million shares.

India’s Stock Market Faces ‘Finfluencer’ Challenge

India is grappling with issues related to social media influencers, known as “finfluencers,” who provide misleading financial advice. The Securities and Exchange Board of India (Sebi) has banned six individuals from trading and sought to confiscate illegal gains totaling Rs530 million ($6.3 million). These individuals are accused of running deceptive trading education businesses with exaggerated profit promises and high fees. Over the past few years, Sebi has acted against more than a dozen finfluencers and flagged nearly 9,000 misleading investment posts. However, legal protections for social media platforms make it challenging for Sebi to fully address the issue.