Market Reactions to Escalating Trade Disputes

As trade tensions between the US and China escalate, major US stock indexes opened with mixed results on Tuesday. The recent imposition of a 10% tariff on Chinese imports by the US has led to Beijing's retaliation with counter-tariffs on US energy products, set to take effect on February 10.

Legal and Corporate Developments

Adding to the market's uncertainty, China has filed a lawsuit with the World Trade Organization against the US tariff hike and initiated a probe into Google. Speculations about another probe against Intel are also influencing investor sentiment. Meanwhile, corporate earnings are under close scrutiny by investors.

Market Movements

At 9:30 am ET, the Dow Jones Industrial Average saw a slight drop, primarily due to a significant tumble by Merck and Co Inc. Conversely, the Nasdaq 100 experienced a modest gain, buoyed by a surge in Palantir Technologies Inc. The S&P 500 remained flat, and the euro strengthened against the dollar.