Stanchion
NEW YORK (AP) — Wall Street was framed high on a quiet Tuesday after roving the day before, hoping that President Donald Trump’s tariffs would not be as cleaned as previously feared.
The S&P 500 added 0.2% after jumping 1.8% on Monday to one of last year’s best days. The Dow Jones industrial average rose 4 points, below 0.1%, while Nasdaq composites rose 0.5%.
US stocks have recovered a chunk of losses since falling 10% below their all-time high earlier this month due to their first “fix” since 2023. The S&P 500 is now down 6% from its record, with the decline being less criticized than before.
But strategists along Wall Street warn that with the April 2 deadline approaching, it is likely that a sharper swing is still in the middle. That’s what Trump called “liberation day,” and when he launches tariffs on his trading partners, he says it’s roughly equal to what each of them see as a burden on the US. The eruption on Wall Street on Monday hoped Trump’s “mutual” tariffs could be more targeted than previously feared.
“We believe the market is experiencing the risk of a tariff shock in early April,” according to Ajay Rajadhyaksha, global research director at Barclays. He not only points to traders’ expectations for future volatility in the stock market, but also the value of the Mexican peso and Canadian dollar.
Even if Trump’s tariffs are less painful for the global economy than feared, dizzying stories about them have already led to weakening confidence among American households and businesses. The fear is that they could lead them to cut their spending and freeze the economy.
A report on Tuesday showed that pessimism among US households is getting worse. Conference committees’ measures of consumer confidence fell more than expected, mainly due to falling over expectations about future conditions in the short term. It fell to its lowest level in 12 years, “usually well below the 80 threshold of recession.”
Like other recent surveys, the data shows that households are much more concerned about where the economy is heading than where they are now. So far, actual economic activity and job markets appear to be sustained despite the deteriorating moods of US businesses and consumers.
On Wall Street, Trump Media & Technology Group said it rose 8.9%, and the company behind the president’s true social platform has reached an agreement with Crypto.com to provide an “America First” investment fund.
The funds traded on the exchange will hold Bitcoin and other digital assets, along with what TMTG calls “America-focused securities across a variety of industries such as energy.” Crypto.com offers ETF cryptocurrency that supports back-end technology, provides custody and works under the TMTG Truth.fi brand.
Tesla rose 3.4% after drifting between modest profits and losses following tougher sales figures from Europe. Nevertheless, its inventory has dropped by nearly 29% so far in 2025.
According to the European Association of Auto Manufacturers, even if the overall market for battery-equipped cars grows, Tesla’s European sales of electric vehicles fell almost halfway in the first two months a year ago.
In addition to the aging model line, the approval of German far-right party Elon Musk in last month’s national elections, and the gesture embrace during Trump’s January event, Elon Musk could be attributed in part to the gestures that many viewed as Nazi salutes. Tesla also faces increased competition with Chinese automakers such as BYD.
Homebuilder KB Home fell 5.2% after reporting lower profit and revenue for the recent quarter than analysts expected. Home builders who are already in a recession may have their costs rise due to tariffs and need to take it over to the buyer. A report on Tuesday morning said US sales in the new home last month were slightly weaker than the economists expected.
The S&P 500 rose to 9.08 points to 5,776.65. The Dow Jones industrial average rose from 4.18 to 42,587.50, while the Nasdaq composite rose from 83.26 to 18,271.86.
Overseas stock markets have seen their indexes rise in much of Europe, following mixed finishes in Asia.
In the bond market, the Ministry of Finance has been eased. Treasury yields for 2010 fell from 4.34% late Monday to 4.31%.
AP business writers Matt Ott and Elaine Kurtenbach contributed.
Original issue: March 25th, 2025, 4:43pm EDT
