The S&P 500 hovered around the flatline on Tuesday, while the Nasdaq slipped 0.4% following three consecutive sessions of losses. The index, which has been under pressure recently, struggled to regain momentum amid growing concerns about global economic challenges.
US stocks mixed after opening on Tuesday
Meanwhile, the Dow Jones added about 100 points, bolstered by some strength in industrial and consumer stocks. However, overall investor sentiment remained pressured by escalating geopolitical and trade tensions.
President Trump confirmed that tariffs on Mexican and Canadian imports, which had been paused for a month, will take effect next week. This move has heightened concerns over potential trade disruptions and its effects on supply chains, particularly in industries that rely heavily on North American imports. Adding to the pressure, reports surfaced that the US is tightening restrictions on China’s chip industry, further straining relations between the two largest economies in the world. This news added to the uncertainty surrounding global tech supply chains, affecting investor confidence in related sectors.
Which stocks moved the markets
Tech, communication services, and utilities were the worst-performing sectors of the day, reflecting broader caution in the market. Specifically, companies tied to high-growth expectations, like Nvidia and Intel, faced declines. Nvidia fell about 1% as traders awaited its earnings report due tomorrow, while Intel declined 0.9%, with investors skeptical about its future growth amid intensifying competition. Tesla dropped 3% after reporting a sharp decline in European sales, raising concerns over demand for electric vehicles in key international markets.
Defensive sectors outperformed
On the other hand, more defensive sectors like real estate, materials, and consumer staples outperformed. Home Depot shares rose 2.3% following the release of its quarterly results, as the company posted solid earnings that exceeded Wall Street expectations. Despite ongoing concerns over inflation and rising interest rates, the results indicated a strong consumer base and resilience in home improvement spending, providing a much-needed boost to the broader market. As investors continue to navigate this uncertain environment, market movements will likely remain choppy, with trade and geopolitical factors taking center stage.
