Market Recap: Wall Street Mixed as Trump’s Tariff Announcement Looms – April 2, 2025
Major Indexes Show Mixed Performance Amid Tariff Uncertainty
Wall Street displayed mixed performance on Wednesday, April 2, 2025, as investors anxiously awaited President Trump’s highly anticipated tariff announcement, which he has dubbed “America’s liberation day.” The market has been experiencing volatility in recent sessions as traders position themselves ahead of what could be significant changes to global trade policies.
The Dow Jones Industrial Average (DJI) hovered near 41,990, showing minimal change from the previous session. Meanwhile, the S&P 500 edged up 0.4% to 5,633, and the tech-heavy Nasdaq Composite gained 0.9% to 17,450, boosted by strong performances from several technology giants.
The CBOE Volatility Index (VIX), often referred to as the market’s “fear gauge,” decreased 2.3% to 21.77, indicating a slight easing of investor anxiety despite the looming tariff announcement.
Trump’s “Liberation Day” Tariffs Take Center Stage
Today marks what President Trump has called “one of the most important days in modern American history,” with the White House set to announce reciprocal tariffs on imported goods across the world. These tariffs are expected to be effective immediately upon announcement.
White House Press Secretary Karoline Leavitt stated, “America will offer companies the lowest taxes, energy costs, regulations if they make their products right here in the United States and hire American workers.”
Market participants remain concerned about the potential impact of these tariffs on inflation, global trade relationships, and economic growth. Economists have warned that growth risks are tilted to the downside due to the ripple effects of these trade policy changes.
Economic Data Points to Stagflation Concerns
Recent economic data has raised concerns about potential stagflation in the U.S. economy. The Institute for Supply Management’s manufacturing PMI registered at 49.0 in March, down from February’s 50.3, indicating contraction in the manufacturing sector. Readings below 50 for this index signal a contraction in activity.
More concerning was the prices paid index, which surged to 69.4 in March from 62.4 in February, reaching its highest level since June 2022. This suggests companies are facing continuing cost increases, which could fuel inflation.
The Job Openings and Labor Turnover Survey (JOLTS) showed job openings at 7.57 million at the end of February, the lowest level since September 2024. This points to a potential softening in the labor market, which could impact economic growth.
Notable Stock Movements
Tesla (TSLA) shares surged more than 6% today, though the stock remains about 50% below its all-time high set in December. The electric vehicle maker has been volatile in recent months following worse-than-expected Q4 earnings, but investors appear optimistic about the company’s upcoming delivery numbers and future prospects for its self-driving technology.
Johnson & Johnson (JNJ) continued its decline, with shares down 7.6% after a U.S. bankruptcy court judge denied the company’s third attempt to resolve its ongoing $10 billion talc litigation through bankruptcy. The company has been fighting litigation from more than 60,000 plaintiffs since the early 2010s over allegations that its talc products caused ovarian cancer.
Nvidia (NVDA) rebounded 0.7% after declining 1.2% on Monday. The chip giant has been under pressure recently, trading below both its 50-day and 200-day moving averages. The stock is down approximately 18.3% year-to-date as part of a broader pullback in technology stocks.
Microsoft (MSFT) moved up 1.4% but remains well below its 50-day and 200-day moving averages. The software giant has declined about 10.1% so far in 2025.
Apple (AAPL) edged up 0.1%, continuing to trade below its 200-day line. The stock has fallen approximately 13% year-to-date but has shown more resilience than other Magnificent Seven stocks during the recent market correction.
Amazon (AMZN) rose 1.6%, though it remains below its long-term 200-day moving average following heavy losses in recent sessions. The e-commerce giant is down about 12.2% for the year.
Upcoming Market Events
Investors are looking ahead to several key events that could impact market direction in the coming weeks:
1. **First-quarter earnings season** is set to begin during the second full week of April, led by banking giants JPMorgan Chase (JPM) and Wells Fargo (WFC). Analysts at FactSet estimate a year-over-year earnings growth rate of 7.3% for S&P 500 companies, which would mark the seventh straight quarter of earnings growth.
2. **Major tech earnings** will follow later in April, with companies like Apple (AAPL), Amazon (AMZN), and Advanced Micro Devices (AMD) scheduled to report their quarterly results during the last week of April.
3. **Economic data releases** in the coming days will be closely watched for signs of inflation and economic growth, which could influence Federal Reserve policy decisions.
Market Outlook
The market remains in a precarious position as investors assess the potential impact of Trump’s tariff policies. The Magnificent Seven stocks, which have been market leaders, are down by an average of 25% from their 2025 peaks, with Tesla showing the largest decline at 34.7%.
Concerns about stagflation, characterized by high inflation and slow economic growth, continue to weigh on investor sentiment. The Federal Reserve Bank of Atlanta’s GDPNow tracker currently signals negative growth of 3.7% in Q1, a deterioration from the prior negative 2.8% reading.
As we move further into the second quarter of 2025, market participants will be closely monitoring corporate earnings, economic data, and policy developments to gauge the direction of the market in the months ahead.
