In post-holiday trading, US equities and Treasuries are rising along with the US dollar. Gold and silver are mixed, while crude oil is slipping.

In his first 24 hours in office, President Trump issued a wave of executive orders impacting a wide range of national policies and priorities. From an economic and market standpoint moving forward, though, the most important decisions involve tariffs – who Trump will target, how big their tariffs will be, and how the tariffed countries will respond.

Trump threatened to hit both Mexico and Canada with 25% tariffs starting Feb. 1, for instance. That caused the Mexican peso and Canadian dollar to drop sharply against the US dollar. But as with most Trump proclamations, markets have to sort out how much is bluster and how much is fact. Roughly $1.8 trillion in goods and services were traded between the US, Mexico, and Canada in 2022.

Mexican Peso, Canadian Dollar, Crude Oil (5-Day % Change)
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Energy sector investors will also be closely watching what Trump does when it comes to oil and natural gas drilling, processing, and transportation. Among his first orders were those rolling back climate-focused regulations and drilling restrictions. That helped contribute to a post-inauguration drop in crude oil prices because markets are pricing in the likelihood of higher US oil production.

Meanwhile, outside of Washington, the earnings reporting season is rolling on. 3M Co. (MMM) shares rose after the diversified manufacturer beat estimates amid stronger electronics and adhesives product demand. Cost-cutting measures that included job cuts also helped bolster the bottom line. Home builder DR Horton Inc. (DHI) also enjoyed a post-earnings pop due to strong results. Tight existing home supply is driving more potential home buyers to the new home market, benefiting the nation’s builders.