Investing.com - US stock markets opened higher on Tuesday, extending gains notched in the prior session, after President Donald Trump announced a series of executive orders and investors awaited a slew of major corporate earnings this week.
Sentiment wavered in global markets following Trump's inauguration on Monday, as initial relief that his executive orders did not include day-one trade tariffs was halted when he told reporters that he was thinking about imposing a 25% tariff on Canada and Mexico from February 1.
By 09:31 ET (14:31 GMT), the benchmark S&P 500 had risen by 27 points or 0.5%, the tech-heavy Nasdaq Composite had increased by 83 points or 0.4%, and the 30-stock Dow Jones Industrial Average had advanced by 151 points or 0.4%.
The main averages on Wall Street were closed on Monday in observance of the Martin Luther King Jr. Day holiday. On Friday last week, the S&P 500 had risen 1% to 5,996.66 points, the Dow Jones Industrial Average gained 0.8% to 43,487.83, while the Nasdaq Composite jumped 1.5% to 19,630.20 points.
Trump's executive orders -- written directives issued to the federal government that are legally binding and do not require approval from Congress -- have so far covered a wide sweep of issues.
On trade, Trump did not move to immediately slap harsh tariffs on both friends and adversaries, saying he is "not ready for that yet". But he directed federal agencies to look into persistent US trade deficits and perceived unfairness in trade practices by other countries.
In a memo, the Commerce and Treasury departments and the US Trade Representative were ordered by Trump to also investigate the "economic and national security implications and risks" resulting from trade deficits and recommend "appropriate" responses, "such as a global supplemental tariff or other policies" to remedy the matter.
Elsewhere, Trump announced a host of immigration-related executive orders, particularly one that would end the long-standing practice of granting automatic birthright citizenship. This decision, which is due to take effect in 30 days, is expected to face legal challenges.
Trump also signed orders taking the US out of the Paris Climate Accord and the World Health Organization, as well as another seeking to delay by 75 days a ban on TikTok. The popular short-form video platform was initially due to be shut down in the US on January 19.
Other orders pertained to moves to end diversity, equity and inclusion programs in the federal government, and created a so-called Department of Government Efficiency that will be led by Tesla (NASDAQ: TSLA ) CEO Elon Musk.
In a note to clients, analysts at Capital Economics said they expect a "fair degree of volatility" to persist in financial markets "for a while yet", although they predict that Trump's first year in office will ultimately coincide with a rally in both stocks and the US dollar.
Meanwhile, investors were poised this week for quarterly earnings releases from several major American companies.
Highlighting Tuesday's results is streaming video giant Netflix (NASDAQ: NFLX ), who is due to report after markets close.
Prior to the opening bell, Scotch tape-maker 3M Co. (NYSE: MMM ) posted fourth-quarter results that exceeded analyst expectations, while its 2025 earnings outlook was largely in line with consensus estimates. Shares in the company jumped in early trading.
Charles Schwab (NYSE: SCHW ) shares spiked as well after the financial services company unveiled adjusted fourth-quarter earnings per share that beat average analyst estimates.
The reports will likely be closely monitored by traders trying to gauge the outlook for markets after a somewhat uneven start to 2025. Some analysts have suggested that earnings could be a driver of equity returns this year, especially as robust economic data and uncertainty around Trump's trade policies cloud the path ahead for potential Federal Reserve interest rate cuts.
Last week, several major US banks, often seen as possible bellwethers for the wider business environment, announced strong results powered in part by revived dealmaking activity.
(Ayushman Ojha contributed reporting.)