US stocks ended the day in positive territory on Tuesday, as investors focused on consumer sentiment data and speculated on a potentially more flexible trade policy stance from the Trump administration ahead of next week’s tariff announcements.
Trump’s Tariff Comments and Market Reactions
On Monday, U.S. President Donald Trump confirmed that automobile tariffs were on the way, but also hinted that not all proposed tariffs would be enforced in the upcoming April 2 announcement. Wall Street is awaiting more clarity on these trade policies.
Ross Mayfield, an investment strategist at Baird, stated, “I don’t expect that we’ll get the clarity that the market is hoping for, but investors are desperate for any sort of clarity on this front. To the extent they’ll get some of it, it’s a huge day.”
Economic Concerns Weigh on Markets
The broader market has been under pressure as worries over the impact of Trump’s tariffs on inflation and economic growth persist. The S&P 500 is down around 2% in 2025 and is heading toward its first quarterly loss since June 2023.
Ratings agency Moody’s issued a warning on Tuesday, stating that the United States’ fiscal strength is set for a prolonged decline due to widening budget deficits and the increasing cost of debt.
Another report revealed a drop in consumer confidence, with the index falling to 92.9 in March, its lowest since February 2021.
Stock Movements and Sector Performance
Apple (AAPL.O) rose by 1.4%, helping to keep the Nasdaq in positive territory, while Nvidia (NVDA.O) saw a decline of 0.6%. Tesla shares surged by 3.45%, extending a 12% rally from the previous day. Despite this, Tesla’s market share in Europe continued to shrink in February, with sales dropping for the second month in a row, even as overall electric vehicle registrations in the region grew.
KB Home (KBH.N) experienced a decline of over 6% after cutting its full-year 2025 revenue forecast.
Among the S&P 500 sectors, seven posted gains, with communication services leading the charge, up 1.43%. Consumer discretionary also saw a 0.98% increase.
Federal Reserve’s Stance and Economic Indicators
Federal Reserve Governor Adriana Kugler commented that the central bank’s interest rate policy remains restrictive, but progress on bringing inflation back to the 2% target has slowed. New York Fed President John Williams noted that both firms and households are facing “heightened uncertainty” about the economic outlook.
This week, investors are particularly focused on the personal consumption expenditures (PCE) price index, which is due for release on Friday. The PCE index is the Fed’s preferred measure of inflation.
Notable Stock Moves
CrowdStrike (CRWD.O) saw a 3.3% rise after BTIG upgraded its rating on the cybersecurity company from “neutral” to “buy.”
Market Overview
Declining stocks outnumbered advancing ones within the S&P 500 by a 1.3-to-1 ratio. The S&P 500 registered 11 new highs and four new lows, while the Nasdaq recorded 42 new highs and 160 new lows. Volume on U.S. exchanges was lighter than usual, with 13.0 billion shares traded, compared to the 16.4 billion shares average over the previous 20 sessions.
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