Market Recap: Stocks Retreat as Trump’s Tariff Deadline Looms – April 1, 2025
Major Indexes Slide Amid Trade War Concerns
U.S. stock markets retreated on Tuesday, April 1, 2025, as investors cautiously counted down to President Trump’s highly anticipated “Liberation Day” rollout of sweeping new reciprocal tariffs scheduled for tomorrow. The market’s performance reflected growing concerns about potential economic impacts of these trade measures.
At the close of trading, all major indexes were in negative territory:
– The S&P 500 (^GSPC) fell 0.33% to 5,593.18, dropping 18.67 points
– The Dow Jones Industrial Average (^DJI) declined 0.65% to 41,730.61, shedding 271.15 points
– The Nasdaq Composite (^IXIC) slipped 0.20% to 17,265.27, losing 34.01 points
– The Russell 2000 dropped 0.66% to 1,998.56, falling 13.35 points
Today’s decline continues a challenging trend for the market, with the S&P 500 having just wrapped up its worst first quarter in three years due to trade war fears.
Trump’s Tariff Plans Weigh on Market Sentiment
The primary driver behind today’s market retreat is the impending announcement of President Trump’s extensive tariff plans, scheduled for tomorrow, April 2. Investors are bracing for what many analysts expect to be sweeping new reciprocal tariffs that could significantly impact global trade.
Trump has already imposed tariffs on aluminum, steel, and autos, along with increased tariffs on goods from China. On Sunday, he indicated that the expected tariffs would include all nations, further elevating concerns about a potential global trade war.
Goldman Sachs has responded to these tariff uncertainties by raising the probability of a U.S. recession to 35% from 20% and cutting its year-end target for the S&P 500 to 5,700.
Notable Stock Movements
Several individual stocks made significant moves today:
– Newsmax (NMAX) continued its remarkable rally, surging 85.31% following its IPO yesterday when it soared 735%. The conservative media outlet has drawn significant interest from retail investors.
– Johnson & Johnson (JNJ) fell 4.65% after a U.S. judge rejected the company’s $10 billion proposal to resolve lawsuits linking baby powder and other talc products to ovarian cancer.
– Tesla (TSLA) rose 1.95% despite facing challenges. The company’s short positions have rebounded to 81 million shares, with bearish traders generating $10 billion year-to-date. Tesla’s stock has declined roughly 32% this year amid shrinking sales and intensified competition.
– Lucid Group (LCID) gained 3.93% after the company’s second product, the Gravity SUV, went on sale.
– PVH (PVH) jumped 16.96% after the Calvin Klein and Tommy Hilfiger owner reported a sales outlook of “modest growth” that beat Wall Street’s expectations.
– Nvidia (NVDA) declined 1.20% as tech stocks generally faced pressure amid the broader market uncertainty.
Upcoming Market Events
Investors should keep an eye on several key economic events in the coming days:
– Trump’s Tariff Announcement – The most anticipated event is tomorrow’s (April 2) announcement of the administration’s new tariff policies, which could significantly impact market direction.
– ADP Non-Farm Employment Change – This important employment indicator will be released tomorrow (April 2).
– Crude Oil Inventories – Also scheduled for April 2, this data could impact energy sector stocks.
– OPEC-JMMC Meetings – Set for April 3, these meetings could influence global oil prices and energy stocks.
– Unemployment Claims – Weekly jobless claims data will be released on April 3.
Market Outlook
The market outlook remains cautious as investors assess the potential impact of Trump’s tariff policies. Wall Street analysts see more ingrained risks to stock performance beyond just trade-war fears.
Despite the overall market decline, it’s worth noting that nearly half of S&P 500 stocks are actually up in 2025, suggesting that the index’s performance is being disproportionately affected by declines in certain heavyweight stocks.
Commodities showed mixed performance, with crude oil rising slightly by 0.13% to $71.57 per barrel, while gold continued its safe-haven appeal, gaining 0.28% to $3,159.20 per ounce.
As we move further into April, market participants will be closely monitoring economic data releases, corporate earnings announcements, and most importantly, the details and implementation timeline of the new tariff policies to gauge their potential impact on global trade and economic growth.
