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US stocks bounced back on Monday as investors looked beyond President Trump's latest tariff threats, including new levies on steel and aluminum imports.

The Dow Jones Industrial Average ( ^DJI ) added nearly 0.4% after the blue-chip index on Friday booked its worst loss in nearly four weeks. The S&P 500 ( ^GSPC ) rose roughly 0.6%, while the Nasdaq Composite ( ^IXIC ) popped nearly 1% as shares of AI chip giant Nvidia ( NVDA ) surged 3%, along with other tech stocks.

Investors weighed Trump's recent pledge t o introduce additional 25% tariffs on steel and aluminum from all countries, with the official announcement expected on Monday.

The new metals tariffs are likely to benefit US steel companies , whose stock jumped . Shares in Cleveland-Cliffs ( CLF ), Nucor ( NUE ) and US Steel ( X ) all jumped. Aluminum producer Alcoa's ( AA ) stock also gained.

The move marks another escalation in Trump's fast-moving policy overhaul and in the odds of a trade war, after tariffs against US trade partners Canada and Mexico were paused last week.

Meanwhile markets this week expect Trump to announce reciprocal tariffs on all trading partners that could match the duties levied on US products by each country.

But Monday's gains for US stocks suggest that investors are getting used to Trump's trade salvos. Some on Wall Street say many now see the announcements as a negotiation tactic only.

That said, markets are concerned the growing list of tariff hikes could drive up inflation, likely to stall interest rate cuts. The January Consumer Price Index reading due on Wednesday will be closely watched for clues, alongside the week's updates on retail sales.

The latest New York Fed survey released on Monday showed consumers see long term inflation expectations ticking higher to 3% — the highest reading since May 2024.

On the corporate front, 78 S&P 500 companies are set to report earnings this week. McDonald's ( MCD ) shares rose after same-store sales grew, beating expectations. Coca-Cola ( KO ), Super Micro Computer ( SMCI ), and Airbnb ( ABNB ) are set to follow this week.