Stock Market Recap: Market Volatility Continues Amid Trump’s Tariff Announcement – April 2, 2025

Major Indexes Show Mixed Performance as Markets Await Tariff Details

The U.S. stock market experienced volatile trading on Wednesday, April 2, 2025, as investors anxiously awaited President Trump’s anticipated announcement on reciprocal tariffs. The major indexes showed mixed performance with the Dow Jones Industrial Average down 0.2% in morning trading, while the S&P 500 and tech-heavy Nasdaq Composite each fell 0.3%.

This follows Tuesday’s choppy session where the S&P 500 rose 0.4% to finish at 5,633.07, and the Nasdaq Composite gained 0.9% to close at 17,449.89, while the Dow Jones Industrial Average fell marginally by less than 0.1% to 41,989.96.

Trading has been particularly volatile this week as market participants position themselves ahead of Trump’s tariff announcement, which he has dubbed “Liberation Day.” The S&P 500, which experienced its worst month since 2022 in March, has managed to close higher for the past two sessions, recovering from steep intraday losses on both days.

Trump’s “Liberation Day” Tariffs Create Market Uncertainty

President Donald Trump is expected to announce reciprocal tariffs on all imported goods to the United States today, April 2, which he has called America’s “liberation day.” White House press secretary Karoline Leavitt indicated that the tariff announcement will come after markets close and will be effective immediately.

Market participants are nervously awaiting the announcement and preparing to analyze the potential impact of these tariffs on both the U.S. and global trade and economic growth. There is particular concern about how these tariffs might affect inflation rates, which have already been a point of concern for investors.

The fear-gauge CBOE Volatility Index (VIX) was down 2.3% to 21.77 on Tuesday, indicating some easing of market anxiety, though uncertainty remains high.

Major Stock Movements and Corporate News

Tesla (TSLA) shares were down 2.5% in premarket trading ahead of the electric vehicle maker’s expected release of first-quarter deliveries data. Analysts expect Tesla to report approximately 393,000 deliveries, up less than 2% year-over-year but fewer than last quarter’s 495,570 vehicles. Despite the morning decline, Tesla stock had raced more than 6% higher on Tuesday, though it remains around 50% off its all-time high set on December 18 and has shed one-third of its value in 2025.

Apple (AAPL) shares rose 0.1% on Tuesday, still trading below its 200-day moving average. In recent news, Visa (V) is reportedly offering a payment of roughly $100 million to secure Apple’s credit card payment network business.

Johnson & Johnson (JNJ) was the major loser among Dow components on Tuesday, with the pharmaceutical giant’s stock tumbling 7.6%.

Among the “Magnificent Seven” stocks, Microsoft (MSFT) moved up 1.4% on Tuesday, though still trading far below its 50- and 200-day moving averages. Nvidia (NVDA), which has been under pressure recently, rebounded 0.7% on Tuesday after declining 1.2% on Monday. Amazon (AMZN) rose 1.6% on Tuesday but continues to trade below its long-term 200-day line following heavy losses in recent sessions.

nCino (NCNO), a cloud-based financial software maker, lost a third of its value in premarket trading Wednesday after the company’s quarterly results disappointed investors.

Economic Data and Indicators

Recent economic data has been mixed, contributing to market uncertainty. The Job Openings and Labor Turnover Survey (JOLTS) reported that job openings at the end of February came in at 7.57 million, compared with an upwardly revised 7.76 million in January, marking the lowest level since September 2024.

The Institute of Supply Management (ISM) reported that the manufacturing PMI for March contracted to 49% from 50.3% in February, below the consensus estimate of 49.5%. Any reading below 50% indicates contraction in manufacturing activities.

On a positive note, construction spending increased 0.7% in March, beating the consensus estimate of 0.3%, following a 0.2% contraction in January.

Upcoming Market Events to Watch

Several key economic reports are scheduled for release in the coming days that could significantly impact market sentiment:

– Today (April 2): ADP Non-Farm Employment Change data will be released, providing insights into private sector employment trends.

– Thursday, April 3: Weekly jobless claims data, U.S. trade deficit figures for February, and the ISM services index for March will be released.

– Friday, April 4: The highly anticipated U.S. employment report for March will be released, with analysts expecting 140,000 new jobs and an unemployment rate of 4.1%. Fed Chairman Jerome Powell is also scheduled to speak.

– Next week (April 10): The Consumer Price Index (CPI) data for March will be released, which will be closely watched for inflation trends.

Market Outlook

As we move further into the second quarter of 2025, market sentiment remains cautious due to concerns over Trump’s tariffs, inflation rates, and fears of a potential near-term recession. Nine out of 11 broad sectors of the S&P 500 ended in positive territory on Tuesday, with the Consumer Discretionary Select Sector increasing 1% while the Health Care Select Sector decreased 1.8%.

Investors will be closely monitoring President Trump’s tariff announcement later today and analyzing its potential impact on corporate earnings, inflation, and overall economic growth. The market’s reaction to this announcement in tomorrow’s trading session will likely set the tone for the remainder of the week.

With the first quarter of 2025 now behind us, the “Magnificent Seven” stocks that dominated 2024 have struggled, with all showing negative performance year-to-date. Tesla has been the worst performer with a 34.7% decline, followed by Nvidia (-18.3%) and Alphabet (-18.5%).

As economic data continues to provide mixed signals and geopolitical tensions remain elevated, investors should prepare for continued volatility in the days and weeks ahead.