The markets are experiencing a decline in response to President Trump’s announcement regarding a global tariff plan. The Dow Jones Industrial Average, S&P 500, Nasdaq Composite, and Russell 2000 all reached 52-week lows today, with respective losses of 1.09%, 0.63%, 0.26%, and further declines.
In contrast, shares of U.S. Steel saw significant gains, with a surge of 16.27% noted during trading. This rise is attributed to President Trump’s directive for a review of the potential acquisition of U.S. Steel by Japan’s Nippon Steel. The acquisition offer stands at $55 per share, marking a 44% increase from the previous Friday’s closing price.
President Trump, who previously expressed opposition alongside former President Biden to Nippon Steel’s bid for U.S. Steel, issued a statement via the White House. He instructed the Committee on Foreign Investment in the United States (CFIUS) to evaluate the acquisition proposal to help determine any necessary actions.
After discussions with the Japanese Prime Minister in February, President Trump adjusted his stance, indicating a willingness to consider a significant investment by Nippon in U.S. Steel rather than a full buyout. Additionally, Ancora, a private investment management company and activist investor, has shifted its position to support the deal. Ancora now advocates for a new board of directors who would approve the $14.9 billion offer.
In light of these developments, U.S. Steel’s shares have risen considerably, deviating from the ongoing market sell-off prompted by tariff concerns.
