View Live Stock Market TodayMajor Indexes Stage Late Rally as Investors Eye Upcoming Tariff Announcement
In a volatile trading session on Monday, March 31, 2025, U.S. stocks managed to reverse earlier losses, with the Dow Jones Industrial Average and S&P 500 finishing higher. This late-day rally came as investors grappled with ongoing concerns about President Trump’s impending tariff announcement, set for Wednesday, April 2.
The S&P 500 (^GSPC) gained 0.57% to close at 5,611.93 points, while the Dow Jones Industrial Average (^DJI) rose 1.00%, adding 415.75 points to end at 41,999.65. However, the tech-heavy Nasdaq Composite (^IXIC) couldn’t shake off its losses, declining 0.16% to finish at 17,294.96.
Market Performance and Key Statistics
Despite the day’s gains, major indexes wrapped up a challenging month and quarter:
– The S&P 500 is down more than 4.5% year-to-date, marking its worst quarterly performance since 2022.
– The Nasdaq Composite has fallen more than 10% since the start of the year, with growth stocks particularly hard hit.
– The Dow Jones Industrial Average, while faring better than its counterparts, is still down more than 1% year-to-date.
The CBOE Volatility Index (^VIX), often referred to as Wall Street’s “fear gauge,” jumped to a two-week high, reflecting increased market uncertainty.
Sector Performance and Notable Stocks
Financial stocks helped boost the S&P 500, with Discover Financial Services (DFS) and Capital One Financial (COF) advancing on optimism surrounding their proposed merger.
The technology sector faced some headwinds:
– Nvidia (NVDA) fell 1.18% to $108.38, contributing to its nearly 20% decline year-to-date.
– Microsoft (MSFT) also traded lower as investors expressed concerns about AI-related spending plans.
– Tesla (TSLA) dropped 1.67% to $259.16 after Stifel lowered the company’s delivery forecast ahead of its first-quarter report.
In other notable moves:
– Moderna (MRNA) shares slid 8.90% to $28.35 following reports of the FDA’s top vaccine official’s forced resignation.
– Rocket Companies (RKT) declined after announcing a $9.4 billion acquisition of Mr. Cooper Group (COOP), which saw its stock surge 14.46% to $119.60.
Upcoming Market Events and Economic Data
Investors are bracing for a crucial week ahead:
1. Trump’s Tariff Announcement: President Trump is expected to unveil his most sweeping tariff push yet at a Rose Garden event on Wednesday, April 2. This announcement has fueled recession worries and market volatility.
2. Economic Data Releases: Key reports this week include ISM business activity surveys and the non-farm payrolls report, which could provide insights into the economy’s health amidst tariff concerns.
3. Federal Reserve Speeches: Several U.S. central bank officials, including Fed Chair Jerome Powell, are scheduled to speak this week. Their comments will be closely monitored for hints about future monetary policy decisions.
Market Outlook and Analyst Perspectives
The uncertainty surrounding trade policy and tariffs has led to increased market volatility and pessimistic forecasts:
– Goldman Sachs has raised the probability of a U.S. recession to 35% from 20% and cut its year-end target for the S&P 500 to 5,700.
– Analysts are concerned about the potential for a global trade war that could hurt economic growth and spur inflation.
Michael Reynolds, vice president of investment strategy at Glenmede, noted, “Investors are parsing every single word coming out of the administration right now that has anything tangentially to do with trade.” He added that more certainty around the rules of tariff deployment could potentially be positive for markets.
As markets navigate through this period of uncertainty, investors will be closely watching the upcoming tariff announcement and economic data releases for clues about the future direction of the U.S. economy and global trade relations.