President Trump has announced a significant increase in global tariffs on steel imports, raising them to 50%. This move has buoyed U.S. steel stocks such as Nucor and Steel Dynamics, which saw share prices rise by roughly 12%. The announcement has raised concerns among broader market participants and prompted a European Union statement warning of economic uncertainty and increased costs. As trade negotiations with China appear strained, and with a potential call between Trump and Xi Jinping looming, the situation remains dynamic.
Investors in S&P 500 component companies Nucor and Steel Dynamics like the news about tariffs, with shares jumping approximately 12% in premarket trading.
BMO Capital swiftly upgraded Nucor's stock to outperform, indicating it stands to benefit from the newly increased steel tariffs given its lower utilization rates.
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