S&P 500 and Nasdaq open; Trump’s tariff jitters; Nvidia, Tesla, American Airlines, more movers

The index’s turnaround comes shortly before Trump is scheduled to deliver a speech and potentially take questions at the World Economic Forum in Davos, Switzerland. Questions could focus on Trump’s recent $500 billion commitment to artificial intelligence through Project Stargate. Doubt was cast over funding after billionaire Elon Musk on X questioned whether the company had enough money to see it through.

Stocks also likely felt some heat from rising Treasury yields. The 10-year yield climbed to 4.647% after falling from its Jan. 13 peak of 4.802%. Higher yields make riskier assets less attractive.

Investors also remain on the lookout for any news related to tariffs, which could reignite inflation and hurt stocks and bonds.

In economic news, data showed Americans’ applications for unemployment benefits rose last week but remained low, indicating minimal stress in labor markets.

“The bottom line: The hiring frenzy and job-hopping atmosphere of a few years ago has largely normalized. Working conditions remain largely constructive, consistent with an economy that remains on a solid growth trajectory,” wrote Jim Baird, chief investment officer at Plante. Moran Financial Advisors.