Shares of Nucor and other U.S. steel producers surged early Monday following President Donald Trump's announcement that steel and aluminum tariffs would double to 50% starting June 4. Nucor's stock gained approximately 10% on the news, reflecting investor optimism about the impact of increased trade protections.
President Trump made the announcement at a rally near Pittsburgh, where he also celebrated Nippon Steel's deal to acquire U.S. Steel. The increased tariffs are intended to further protect domestic steelmakers from foreign competition and illegal dumping.
BMO Capital Markets upgraded Nucor to Outperform from Market Perform, citing the stock's 'compelling' valuation and long-term growth potential stemming from these new tariffs. The policy is expected to create a more favorable pricing environment and increase demand for domestically produced steel.
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