Volatile session ends with modest gains for tech, losses for blue chips
U.S. markets were mixed on Tuesday as investors waited for details on a new set of tariffs expected to be announced by former President Donald Trump on Wednesday. The uncertainty has led to volatile trading and growing caution across Wall Street, as reported by CNBC.
The S&P 500 rose 0.38% to 5,633.07, while the Nasdaq Composite gained 0.87% to 17,449.89. The Dow Jones Industrial Average slipped 11.80 points, or 0.03%, to 41,989.96.
The S&P 500 saw sharp swings throughout the session, rising as much as 0.7% at one point before falling nearly 1% at its low. Investors are watching closely for the scope of the tariff plan, which the White House says will take effect “immediately” after it’s announced.
Tesla and Nike helped lift the consumer discretionary sector, with gains of 3.6% and 2% respectively.
Traders also responded to weaker economic data. A manufacturing survey from the Institute for Supply Management showed contraction, and February job openings came in slightly below expectations, according to the U.S. Bureau of Labor Statistics.
As CNBC noted, recent volatility follows a rough first quarter. The S&P 500 dropped 4.6% and the Nasdaq fell 10%, marking their worst quarterly performances since 2022. The Dow was down 1.3% over the same period.
“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,” Barclays assistant vice president Anshul Gupta said on Tuesday.
