Market Recap: Wall Street Awaits Trump’s ‘Liberation Day’ Tariffs as Tesla Disappoints on Deliveries
Market Performance: Mixed Results as Investors Navigate Uncertainty
Wall Street showed mixed performance on Wednesday, April 2, 2025, as investors anxiously awaited President Donald Trump’s “Liberation Day” tariff announcement scheduled for later in the day. The major indexes displayed cautious movement with the Dow Jones Industrial Average falling approximately 200 points, while the S&P 500 and Nasdaq Composite both declined around 0.7% in early trading.
By mid-day, the S&P 500 was trading at 5,640.82, up 0.14%, while the Dow 30 reached 42,030.14, gaining 0.10%. The tech-heavy Nasdaq showed slightly stronger performance at 17,499.06, up 0.28%.
This follows Tuesday’s session where markets closed with the S&P 500 rising 0.4% to 5,633.07 and the Nasdaq gaining 0.9% to 17,449.89, while the Dow Jones Industrial Average edged down less than 0.1% to 41,989.96.
Trump’s Tariff Announcement Takes Center Stage
The market’s primary focus today is President Trump’s anticipated announcement of reciprocal tariffs on virtually all countries with which the U.S. has trading relationships. The White House confirmed these tariffs will be “effective immediately” after the 4 p.m. EDT announcement.
Market participants are nervously awaiting details, with particular attention on how these tariffs might impact inflation rates and global economic growth. According to reports, one option under consideration is a 20% duty on virtually all imports.
The announcement comes after Trump previously called April 2 “America’s liberation day,” signaling a significant shift in U.S. trade policy that has kept investors on edge throughout the week.
Tesla Disappoints with Q1 Delivery Numbers
In major stock news, Tesla (TSLA) reported disappointing first-quarter delivery numbers that fell well below analyst expectations. The electric vehicle maker delivered 336,681 vehicles in Q1 2025, representing a 13% decline from the same period last year.
Analysts had expected Tesla to deliver between 360,000 and 370,000 vehicles, with some estimates reaching as high as 407,000 units.
Despite the disappointing numbers, Tesla shares reversed early losses and were up approximately 5% by mid-day after Politico reported that Elon Musk was planning to step down from his role as an advisor to President Trump.
Other Notable Stock Movements
Other major tech stocks showed mixed performance ahead of the tariff announcement:
– Nvidia (NVDA) was down 0.46% to $109.64
– Microsoft (MSFT) declined 0.5%
– Apple (AAPL) dropped about 0.4%
– Amazon (AMZN) was up 1.45% to $194.95
– Palantir (PLTR) gained 2.21% to $86.55
– Ford (F) rose 2.41% to $10.18
Among the day’s top gainers were Denali Therapeutics (DNLI) up 14.97%, Avidity Biosciences (RNA) gaining 10.85%, and New Fortress Energy (NFE) rising 10.62%.
Notable losers included nCino (NCNO), which tumbled 20.23% after disappointing quarterly results and weak guidance, and MicroAlgo (MLGO) dropping 19.93%.
Economic Data and Upcoming Events
Several economic reports were released today, providing additional context for market movements:
– The ADP employment report showed employers added 155,000 jobs in March, exceeding expectations and up from an upwardly revised 84,000 in February
– Factory orders gained 0.6% in February, better than consensus estimates but slowing from January’s upwardly revised 1.8%
Looking ahead, key upcoming events include:
– Federal Reserve Governor Adriana Kugler is scheduled to speak at 4:30 p.m. EDT on “Inflation expectations and monetary policymaking”
– Thursday will bring the weekly initial jobless claims report, U.S. trade deficit data, and ISM services index
– Friday features the highly anticipated U.S. employment report for March, with economists expecting 140,000 jobs added and an unemployment rate of 4.1%
– Fed Chairman Jerome Powell is scheduled to speak on Friday at 11:25 a.m. EDT
Market Outlook
As we move through the second quarter of 2025, market sentiment remains cautious amid concerns about Trump’s tariffs, inflation, and fears of a potential recession. The CBOE Volatility Index (VIX), often referred to as the “fear gauge,” stood at 21.77 as of Tuesday’s close, indicating elevated market uncertainty.
Investors will be closely monitoring the impact of today’s tariff announcement on global trade relations and domestic inflation, as well as upcoming economic data and Federal Reserve commentary for signals about the future direction of monetary policy.
With Tesla’s disappointing delivery numbers highlighting challenges in the EV sector and broader concerns about economic growth, market participants will need to navigate a complex landscape of political, economic, and corporate factors in the days and weeks ahead.
