Wall Street Steady, Confidence Falls, Trump Media Jumps

25 Mar at 11:45 am

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Wall Street Steady, Confidence Falls, Trump Media Jumps/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Wall Street edged higher Tuesday as investors digested disappointing consumer confidence data and awaited clarity on Trump’s global tariff plans. Despite market unease, Trump Media surged nearly 9% after announcing a crypto investment partnership. Analysts caution that volatility could increase ahead of the April 2 tariff deadline.

FILE – A sign outside the New York Stock Exchange marks the intersection of Wall and Broad Streets, Tuesday, Jan. 28, 2025, in New York. (AP Photo/Julia Demaree Nikhinson, File)

Market Update Quick Looks

S&P 500, Dow, and Nasdaq all inched higher Tuesday morning.
Consumer confidence dropped to a 12-year low, below recession warning levels.
Trump Media jumped 8.8% on crypto ETF partnership with Crypto.com.
Analysts warn markets are underestimating risks from Trump’s April 2 tariffs.
KB Home shares fell 4.2% on disappointing earnings.
McCormick dipped 0.2% as consumer weakness pressured profits.
Tesla slipped 0.6% amid falling sales and European backlash.
U.S. new home sales missed economist expectations.
Treasury yields eased slightly; 10-year yield down to 4.32%.
European markets mostly rose, while Asia finished mixed.

Wall Street Steady, Confidence Falls, Trump Media Jumps

Deep Look

Wall Street opened Tuesday with modest gains, holding steady after Monday’s rally as investors awaited further details on President Donald Trump’s looming global tariffs and reacted to troubling consumer sentiment data. The S&P 500 rose 0.2% in early trading, following a strong 1.8% gain the previous day. The Dow Jones Industrial Average was up 50 points, or 0.1%, while the Nasdaq Composite ticked up 0.2%.

The gains come despite growing concerns over the health of the U.S. consumer. The Conference Board reported that its consumer confidence index fell more than expected in March, dropping to 92.9. The expectations component—reflecting outlooks for income, employment, and business conditions—plunged to 65.2, its lowest point in 12 years. Historically, readings below 80 often signal a recession ahead.

“Consumers are feeling increasingly pessimistic about the future, even though current conditions remain relatively stable,” the report noted.

The data underscores growing anxiety among households as uncertainty swirls around Trump’s impending trade agenda. The administration has branded April 2 as “Liberation Day,” when the White House plans to implement “reciprocal tariffs” on global trading partners. While Monday’s market rally was driven by hopes that the tariffs may be more targeted than initially feared, economists warn that any escalation could undermine growth.

“We think markets are underplaying the risk of a tariff shock in early April,” said Ajay Rajadhyaksha, global head of research at Barclays. He also pointed to currency markets, where the Mexican peso and Canadian dollar have held firm despite tariff fears—suggesting investor complacency.

Meanwhile, Trump Media & Technology Group (TMTG) was a standout performer on Tuesday, surging 8.8% after announcing a major partnership with Crypto.com. Under the deal, the company behind Truth Social will launch a suite of exchange-traded funds (ETFs) through its new Truth.Fi brand. The ETFs will include bitcoin, other digital assets, and “America-first” securities focused on domestic industries like energy. Crypto.com will provide backend support, custody services, and the digital currencies.

Elsewhere in the market, homebuilder KB Home sank 4.2% after missing Wall Street’s profit and revenue expectations. Analysts cited concerns that Trump’s tariffs could raise material costs, pressuring homebuilders already grappling with a housing slowdown. A government report Tuesday also showed that U.S. new home sales fell short of forecasts last month.

McCormick, the spice and seasoning giant, slipped 0.2% after reporting weak earnings. The company said it’s facing increasing pressure from a “cautious and uncertain consumer environment.”

Tesla shares also wavered, eventually falling 0.6% after dismal European sales data. According to the European Automobile Manufacturers Association, Tesla’s electric vehicle sales in Europe fell nearly 50% year-over-year through February, even as the overall EV market grew. Analysts partly blame a stale product lineup and mounting backlash over CEO Elon Musk’s political activism. His recent endorsement of Germany’s far-right party and a widely criticized gesture at a Trump event have added to the brand’s challenges, particularly in Europe.

The broader global market picture was mixed. European indexes climbed on corporate optimism and a rebound in energy stocks, while Asian markets ended with a more varied performance.

In the bond market, Treasury yields dipped modestly. The 10-year yield eased to 4.32% from 4.34% as investors continued to weigh inflation risks, monetary policy, and geopolitical uncertainty.

With just days to go before Trump’s tariffs take effect, markets remain on edge. While stocks have clawed back some of their recent correction losses—the S&P 500 is now down roughly 6% from its all-time high—analysts say more turbulence is likely.

“The path forward depends heavily on what Trump actually does with tariffs,” said Saul Martinez, strategist at HSBC. “If the measures are as broad as feared, it could derail the market’s momentum.”