Market Recap: Wall Street Wavers as Trump’s Tariff Announcement Looms – April 2, 2025
Major Indexes Show Mixed Performance Amid Tariff Uncertainty
U.S. stock markets displayed cautious trading on Wednesday, April 2, 2025, as investors braced for President Trump’s highly anticipated tariff announcement scheduled for later in the day. The major indexes showed mixed performance with the S&P 500 edging up 0.14% to 5,640.82, the Dow Jones Industrial Average gaining a modest 0.10% to 42,030.14, and the Nasdaq Composite rising 0.28% to 17,499.06 by mid-afternoon trading.
Early morning trading saw futures pointing to a lower open, with Dow futures down 0.5%, S&P 500 futures off 0.7%, and Nasdaq 100 futures dropping 0.9% in pre-market activity.
Trump’s “Liberation Day” Tariffs Take Center Stage
The market’s primary focus today is President Trump’s scheduled announcement of new reciprocal tariffs at 4:00 p.m. EDT, which the White House has indicated will be “effective immediately” upon announcement.
While specific details remain unknown, media reports suggest the president is considering imposing 20% “blanket” levies on trading partners.
White House Press Secretary Karoline Leavitt emphasized the significance of the announcement, stating, “April 2, 2025, will go down as one of the most important days in modern American history,” adding that “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.”
Economic Data Points to Mixed Signals
Recent economic data has presented a mixed picture for investors. The ADP National Employment Report released today showed employers added 155,000 jobs in March, exceeding expectations and increasing from an upwardly revised 84,000 in February.
However, data released on Tuesday showed concerning signs of stagflation, with the ISM’s manufacturing index contracting for the first time this year while the prices paid index surged to the highest reading since June 2022.
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, suggesting economic challenges ahead.
Tesla Stock Surges Despite Disappointing Delivery Numbers
Tesla (TSLA) shares surged more than 4.35% today despite the company reporting disappointing first-quarter delivery numbers.
Tesla attributed the lower deliveries to production challenges related to the Model Y changeover across all four of its factories, which led to “the loss of several weeks of production in Q1.” However, the company noted that “the ramp of the New Model Y continues to go well.”
Magnificent Seven Stocks Show Mixed Performance
The “Magnificent Seven” tech stocks, which have significant influence on market-cap weighted indexes, showed mixed performance today. While Tesla led the group with its strong gains, other tech giants faced selling pressure ahead of the tariff announcement.
Nvidia (NVDA) fell about 0.46% by mid-afternoon, Alphabet (GOOGL) dropped 0.7%, Microsoft (MSFT) declined 0.5%, and Apple (AAPL) and Amazon (AMZN) both slipped about 0.4% in morning trading.
The Magnificent Seven stocks have struggled in 2025, with all showing negative performance through the first quarter. Tesla has been the worst performer, down 34.7% as of March 31, followed by Nvidia (-18.3%) and Alphabet (-18.5%).
Notable Stock Movers
Several stocks made significant moves today:
– Palantir Technologies (PLTR) gained 2.21%, showing resilience amid broader tech weakness.
– Cloud-based financial software maker nCino (NCNO) plummeted approximately 20.23% after reporting disappointing quarterly results and providing weak guidance.
– Denali Therapeutics (DNLI) surged nearly 15%, leading the day’s gainers.
– Ford Motor Company (F) rose 2.41% despite broader market concerns about tariffs potentially affecting the automotive sector.
Looking Ahead: Key Events to Watch
Investors will be closely monitoring several upcoming economic events that could impact market direction:
1. Federal Reserve Governor Adriana Kugler is scheduled to speak at 4:30 p.m. EDT today on “Inflation expectations and monetary policymaking.”
2. Thursday, April 3, will bring the release of initial jobless claims, the U.S. trade deficit, and ISM services data.
3. The highly anticipated March jobs report will be released on Friday, April 4, providing crucial insights into the health of the U.S. labor market. Fed Chairman Jerome Powell is also scheduled to speak on Friday.
4. Next week will bring important inflation data with the Consumer Price Index (CPI) report on Thursday, April 10, and the Producer Price Index (PPI) on Friday, April 11.
As markets digest the implications of Trump’s tariff announcement, these upcoming economic indicators and Fed speeches will be crucial in determining market direction in the days and weeks ahead. Investors remain cautious about potential ripple effects from rising costs and deteriorating supply chains that could result from the new tariff policies.
