U.S. Stock Market Summary for Tuesday, April 1, 2025

Major Indices

  • S&P 500: +0.38% → 5,633.07

  • Dow Jones Industrial Average: -0.03% → 41,989.96

  • Nasdaq 100: +0.82% → 19,436.42

  • Russell 2000: +0.02% → 2,012.24

Market Overview

U.S. equity markets ended mixed on Tuesday amid heightened volatility, driven by uncertainty surrounding President Donald Trump's anticipated tariff announcement, set for Wednesday. The S&P 500 closed up 0.4%, recovering from early-session losses that neared 1%, as weaker manufacturing data and a drop in job openings fueled hopes for potential rate cuts.

Manufacturing activity in March contracted, with rising factory prices intensifying inflation concerns. These economic signals, while worrisome, shifted market expectations toward a more dovish monetary policy stance, helping support the broader indices by session close.

Trading volumes remained subdued—roughly 20% below the 30-day average—amplifying market swings throughout the day.

Sector Highlights

  • Technology: The Nasdaq gained 0.9% as large-cap tech stocks rebounded sharply, helping reverse earlier losses in the broader market.

  • Retail: PVH Corp surged 17% after issuing strong forward guidance, signaling resilience in consumer demand.

  • Automotive: Tesla rose 1.1% ahead of its quarterly delivery report, with investor sentiment buoyed by expectations of solid performance.

  • Healthcare: Johnson & Johnson fell 4.9% following a court rejection of its bankruptcy strategy to manage talc-related lawsuits.

Economic Snapshot

  • Manufacturing: March PMI data indicated a contraction, raising concerns about industrial slowdown.

  • Inflation: Factory input prices rose for the second consecutive month, suggesting persistent inflationary pressures.

  • Labor Market: February job openings declined, adding to speculation that the Federal Reserve may pivot toward rate easing.

The 10-year Treasury yield slipped 4 basis points to 4.17%, reflecting increased demand for safer assets amid macro uncertainty.

Expert Commentary

  • Ari Wald (Oppenheimer): “Historically, when the S&P 500 begins April below its 200-day moving average, it posts an average gain of over 2%—a potential silver lining for bulls.”

  • Max Kettner (HSBC): “'Liberation Day' may not eliminate tariff uncertainty; April 2 could introduce even greater ambiguity.”

  • Anshul Gupta (Barclays): “If tariffs are milder than feared, a relief rally could follow. But overall trade risks remain underpriced and tilt downside.”

Government & Political Notes

President Trump is expected to unveil sweeping tariffs as part of what he’s dubbed “Liberation Day.” According to reports, the administration is considering a blanket 20% tariff on most imports, although final terms may vary by country. A White House spokesperson confirmed the measures would take effect immediately upon announcement, scheduled for April 3 at 5:00 AM KST.

Uncertainty surrounds whether the U.S. will implement uniform tariffs or differentiated rates. Sources indicate the U.S. Trade Representative is also preparing an alternative, less severe third option targeting specific nations.

Conclusion

Despite a volatile session shaped by geopolitical and economic headwinds, the U.S. stock market managed a mixed close with notable strength in tech and select retail names. Investors are bracing for President Trump’s tariff announcement and closely monitoring incoming economic data. While near-term risks remain elevated, especially around trade policy, expectations for monetary easing could provide a cushion for equities in the weeks ahead.

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