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US stocks close mixed as investors await tariff clarity

0 Comment(s)Print E-mail Xinhua, April 2, 2025
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U.S. stocks ended mixed on Tuesday in a volatile session as investors awaited clarity on U.S. President Donald Trump's tariff rollout, while weaker-than-expected economic data added to market pressure.

The Dow Jones Industrial Average fell by 11.80 points, or 0.03 percent, to 41,989.96. The S&P 500 added 21.22 points, or 0.38 percent, to 5,633.07. The Nasdaq Composite Index increased by 150.60 points, or 0.87 percent, to 17,449.89.

Nine of the 11 primary S&P 500 sectors ended in green, with consumer discretionary and communication services leading the gainers by going up 1.14 percent and 1.02 percent, respectively. Meanwhile, health and financials dropped 1.75 percent and 0.16 percent, respectively.

Consumer discretionary stocks outperformed, with Tesla gaining 3.59 percent and Nike rising more than 2 percent.

Economic concerns deepened as the Institute for Supply Management's manufacturing survey indicated contraction, coming in below expectations. Additionally, February's job openings slightly missed estimates, according to the U.S. Bureau of Labor Statistics.

Investors are waiting for Wednesday's expected announcement of reciprocal tariffs on imports from nearly all countries. While some had hoped for a more targeted approach, the White House confirmed the tariffs would take effect immediately upon announcement.

"The lack of certainty and the shroud of secrecy has been driving the market insane," said Jay Woods, chief global strategist at Freedom Capital Markets.

The Washington Post reported Tuesday that the administration is considering broad tariffs of about 20 percent on most imports. Meanwhile, the Atlanta Federal Reserve's GDPNow model has slashed its first-quarter growth estimate to a concerning -1.4 percent annualized rate, down from -0.5 percent just last week. This deepening contraction signals mounting economic pressures, as tariffs, inflation, and weakening consumer sentiment weigh on growth prospects.

Raymond James' Washington policy analyst Ed Mills cautioned that tariff-related uncertainty is unlikely to dissipate anytime soon. "I think that we're going to have some immediate tariffs, at least on that, so called 'dirty 15' tomorrow, it might be expanded out a little bit. I do think that we'll also get investigations into the rest of the world," he said.

However, RBC Wealth Management predicts that stocks could rebound in the coming months following a volatile first quarter. "The silver lining is that after a 10 percent correction by the S&P 500, weekly indicators, tracking 2-4 month swings, are increasingly oversold for the S&P 500 and most growth and cyclical stocks as they test next technical support," technical strategist Robert Sluymer wrote in a Tuesday note. "With weekly indicators moving into oversold territory heading into earnings season, our expectation is that a tactical Q2 rebound is likely given sentiment surveys are suitably bearish."

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