Wall Street saw a strong preference for small and mid-cap equities, with the Russell 2000 index leading the market as investors bet on more domestic-friendly policies following Donald Trump's inauguration on Jan. 20 as the 47th U.S. president.

The Russell 2000 rallied 1.7%, while other large-cap indices trailed behind. The Dow Jones, composed of non-tech blue-chip companies, rose by 1.2%, while both the S&P 500 and the Nasdaq 100 edged up 0.9%.

Most sectors traded higher, except for energy. The announcement of a national energy emergency raised concerns about a fossil fuel oversupply, sending oil prices down more than 2%. WTI crude dropped to $72.10 per barrel.

In the Treasury market, yields fell as investors appeared convinced by Trump's pledges on inflation control and lower federal spending. The 10-year Treasury yield declined by five basis points to 4.58%.

One of the session's most notable moves came from Apple Inc. (NASDAQ:AAPL), which plunged 4.3%, marking its worst trading day since early August 2024. The decline followed a downgrade by Jefferies, citing challenges in iPhone sales in China.

In commodities, gold climbed 1.2% to a two-month high, aiming for its ninth gain in the past eleven sessions, supported by lower Treasury yields. In the crypto space, Bitcoin (CRYPTO: BTC) rebounded 3% to $106,000 after briefly touching $100,000 overnight amid the absence of crypto-related remarks from Trump on his first day in office.

Tuesday’s Performance In Major U.S. Indices, ETFs

According to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust (NYSE:SPY) rose 0.9% to $602.64.
• The SPDR Dow Jones Industrial Average (NYSE:DIA) rose 1.1% to $439.55.
• The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) edged 0.8% higher to $525.61.
• The iShares Russell 2000 ETF (NYSE:IWM) rose 1.8% to $229.50.
• The Industrials Select Sector SPDR Fund (NYSE:XLI) outperformed, up 2%; the Energy Select Sector SPDR Fund (NYSE:XLE) lagged, down 0.3%.

Tuesday’s Stock Movers

• Charles Schwab Corp. (NYSE:SCHW) rallied 4.7%, eyeing the strongest session in over two months, after reporting stronger-than-expected quarterly results.
• Other stocks reacting to earnings included Prologis Inc. (NYSE:PLD), up 6.4%; 3M Company (NYSE:MMM), up 5.5%; DR Horton Inc. (NYSE:DHI), down 0.4%; KeyCorp (NYSE:KEY), down nearly 5% and Fifth Third Bancorp (NASDAQ:FITB), up 0.4%.
• General Motors Co. (NYSE:GM) soared by nearly 6% after Deutsche Bank upgraded the stock from Hold to Buy, and raised the price target from $56 to $60.
• Companies slated to report earnings after the close include Netflix Inc. (NASDAQ:NFLX), Interactive Brokers Group Inc. (NASDAQ:IBKR), Capital One Financial Corp. (NYSE:COF) and United Airlines Holdings Inc (NASDAQ:UAL)

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