Stock Market Today: Indexes Retreat as Trump’s Tariff Announcement Looms

Market Performance: Major Indexes Down as Q2 Begins

As of Tuesday, April 1, 2025, the U.S. stock market has started the second quarter on a negative note, with all major indexes retreating amid investor caution over President Trump’s anticipated “Liberation Day” tariff announcement. The S&P 500 (^GSPC) dropped 0.33% to 5,593.18, the Dow Jones Industrial Average (^DJI) fell 0.65% to 41,730.61, and the tech-heavy Nasdaq Composite (^IXIC) declined 0.20% to 17,265.27.

This downward trend follows a challenging first quarter for Wall Street. The S&P 500 lost 4.6% in Q1 2025, marking its worst first quarter in three years, while the Nasdaq Composite plunged 10.4% – its biggest quarterly pullback since Q2 2022. The Dow Jones Industrial Average fared slightly better with a more modest 1.3% decline to start 2025.

Tariff Concerns Driving Market Volatility

The primary factor weighing on markets today is uncertainty surrounding President Trump’s upcoming tariff policy rollout. The Washington Post reported that the administration is considering implementing tariffs of approximately 20% on most imports into the U.S., though no final decision has been made.

“While the higher event risk baked in creates room for a potential relief rally in case of less aggressive tariffs, the risk arguably is still to the downside, with markets likely underpricing the trade risks,” noted Barclays assistant vice president Anshul Gupta in a Tuesday report.

This uncertainty has put stocks on a rollercoaster ride, with the S&P 500 touching a six-month low on Monday before recovering some ground.

Notable Stock Movers Today

Several individual stocks are making significant moves today:

– **Newsmax (NMAX)** shares continued their remarkable rally, rising 26% in premarket trading after soaring 735% during its first day of trading following its IPO on Monday. The conservative media outlet has seen its ratings rise since President Trump’s election.

– **Johnson & Johnson (JNJ)** stock fell 3.6% 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.

– **Lucid (LCID)** shares were up over 6% as the company’s second product, the Gravity SUV, went on sale. Interim CEO Marc Winterhoff told Yahoo Finance that the EV maker is providing customers with an alternative to Tesla.

– **PVH (PVH)** stock jumped over 17% after the Calvin Klein and Tommy Hilfiger owner reported a sales outlook of “modest growth” that beat Wall Street’s expectations.

– **Tesla (TSLA)** shares were up 1.55% despite falling sales in Europe and losing 36% of its value in Q1 2025 – its worst quarterly performance since 2022.

– **NVIDIA (NVDA)** was down 0.83% to $107.49, continuing to be among the most actively traded stocks.

Upcoming Economic Events and Earnings

Investors are closely monitoring several key economic indicators and events this week:

– **Today (April 1)**: ISM Manufacturing Index, Construction Spending, and JOLTS Job Openings reports are due. These will provide insights into the health of the manufacturing sector and labor market.

– **April 2**: ADP Non-Farm Employment Change and Crude Oil Inventories data will be released.

– **April 3**: OPEC-JMMC Meetings, Unemployment Claims, and Final Services PMI are scheduled.

– **April 4**: The highly anticipated Employment Situation report (Non-Farm Payrolls) will be released, with consensus expectations of 128K new jobs and an unemployment rate of 4.2%.

On the earnings front, RTX (NYSE: RTX) announced it will release its first quarter 2025 earnings results on Tuesday, April 22, prior to the stock market opening. This will be closely watched as RTX is a major player in the aerospace and defense sector.

Tech Sector and Corporate News

In significant tech news, OpenAI has closed a $40 billion funding round, marking the largest private tech funding round on record. The deal values the artificial intelligence company at $300 billion, placing it among the most valuable private companies in the world alongside TikTok parent ByteDance and just behind SpaceX.

Speaking of TikTok, the social media platform is facing an April 5 deadline that could determine its fate in the U.S. Its Chinese parent, ByteDance, must divest the app’s American operations by this date, or it could be effectively banned.

Market Outlook

As we enter the second quarter of 2025, market sentiment remains cautious due to trade war concerns and potential economic impacts from new tariffs. Analysts will be closely watching the upcoming economic data releases, particularly Friday’s jobs report, for signs of economic resilience or weakness.

The Asia-Pacific markets mostly climbed Tuesday, recovering from a sharp sell-off in the previous session as investors await clarity on the U.S. tariff situation. Australia’s S&P/ASX 200 rose 1.04%, Japan’s Nikkei 225 ended flat, and South Korea’s Kospi advanced 1.62%.

Investors should prepare for continued volatility as markets digest the upcoming tariff announcement and assess its potential impact on global trade and corporate earnings.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. We are not financial professionals. The authors and/or site operators may hold positions in the companies or assets mentioned. Always do your own research before making financial decisions.