U.S. Markets Climb Amid Mixed Signals Ahead of Tariff Announcements

The S&P 500 edged up 0.4% on Tuesday after trimming some losses, buoyed by a strong performance in tech despite overall cautious sentiment. At 4:00 p.m. ET, the Dow fell a negligible 11 points (0.03%), while the NASDAQ Composite climbed 0.9%. Despite these gains, the first quarter of 2025 has been challenging overall—S&P 500 losses approached 5%, the NASDAQ dropped over 10%, and the Dow declined nearly 2%.

Tariff Announcement Looms

Investors are bracing for a critical policy move. President Donald Trump is set to impose reciprocal tariffs on a broad range of trading partners on April 2, with the measures effective immediately. White House press secretary Karoline Leavitt confirmed that the announcement is expected at 3:00 p.m. ET, marking the start of what Trump has dubbed "Liberation Day."
Key elements of the announcement include:

• A potential blanket tariff of up to 20%, with options for tailored measures.

• Revocation of certain exemptions against China, while still allowing small packages under 100 units to enter duty free.

• A follow-up 25% tariff on auto imports scheduled to take effect on April 3.

Market Concerns

These tariff measures are expected to have significant global trade implications and may contribute to increased recession risks. Uncertainty over the new trade policy has added to concerns about economic slowdown, particularly as inflation pressures mount and consumer spending shows signs of weakness.

For those looking to delve deeper into the impact of these developments on growth metrics, the Financial Growth endpoint offers detailed, real-time insights into underlying trends.