S&P 500 Slips as Investors Brace for Upcoming Tariffs

26 Mar at 11:20 am

2662 posts

S&P 500 Slips as Investors Brace for Upcoming Tariffs/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks hovered near the flatline Wednesday following a turbulent stretch of volatility. The S&P 500 slipped slightly while the Dow inched higher, as investors assessed mixed economic data and braced for new tariffs in April. Confidence remains fragile, despite continued signs of economic resilience.

FILE – An American flag is displayed on the New York Stock Exchange in New York, Monday, Feb. 24, 2025. (AP Photo/Seth Wenig, File)

Market Movement Quick Looks:

S&P 500: Down 0.1% in early Wednesday trading
Dow Jones Industrial Average: Up 97 points (+0.2%)
Nasdaq Composite: Down 0.4%
10-Year Treasury Yield: 4.34%, up from 4.31%

S&P 500 Slips as Investors Brace for Upcoming Tariffs

Deep Look:

NEW YORK (AP) — After weeks of rollercoaster market action, Wall Street paused again on Wednesday with another quiet morning session. Investors showed restraint as they weighed uncertainty over U.S. tariffs, mixed economic signals, and the durability of the job market.

The S&P 500 edged 0.1% lower, the Dow Jones Industrial Average rose 97 points (0.2%), and the Nasdaq Composite dipped 0.4% by mid-morning. Markets seem to be catching their breath after a volatile March, which saw the S&P tumble into a “correction” — a 10% slide from recent highs — before bouncing back.

Eyes on Tariffs, Confidence, and Manufacturing Data

Strategists caution that volatility may return as April 2 looms, the date when President Donald Trump’s reciprocal tariffs are expected to take effect. Even if the tariffs are not as sweeping as feared, the uncertainty alone has already dented business and consumer confidence.

Despite the noise, the economy and labor market remain resilient, with no signs of immediate recession. However, Wednesday’s durable goods orders report painted a mixed picture:

Headline orders for long-lasting goods like machinery and aircraft unexpectedly rose
Core capital goods orders — a key business investment gauge excluding defense and aircraft — shrank slightly, signaling caution among companies

The conflicting data kept investors on edge, while bond yields seesawed in response. The 10-year Treasury yield climbed to 4.34%, up from 4.31% on Tuesday.

Movers & Shakers:

GameStop: +8.9%
The video game retailer posted better-than-expected earnings and announced it would allocate part of its treasury into bitcoin, reviving meme-stock chatter.
Dollar Tree: -2.6%
The discount retailer is selling Family Dollar to private equity firms for $1 billion, a move that ends a difficult decade trying to integrate the acquisition.