The S&P 500 traded around the flatline, while the Nasdaq declined 0.2% and the Dow Jones gained about 210 points on Wednesday, as traders awaited further clarity on trade policy amid growing concerns over the economic outlook.
US stocks mixed at opening
Market sentiment remained cautious following President Trump’s reaffirmation on Tuesday of his opposition to too many exceptions on reciprocal tariffs, set to take effect on April 2nd. Investors worried that the measures could escalate trade tensions, potentially weighing on corporate profits and economic growth.
Meanwhile, the latest durable goods data provided a mixed picture of the economy. While total orders surprisingly rose, orders for non-defense capital goods excluding aircraft—a closely watched proxy for business investment—fell 0.3%, missing forecasts of a 0.2% increase. The disappointing figure suggested that businesses remain hesitant to ramp up spending amid uncertainty over interest rates and trade policy.
Sector performance is uneven
Sector performance was uneven, with the energy sector leading gains as oil prices remained firm. Chevron climbed 1.3%, supported by optimism over continued strength in crude demand. On the other hand, tech and communication services lagged, dragging the Nasdaq lower. Megacap stocks were mostly weaker, with Microsoft slipping 0.2%, Nvidia tumbling 2.2%, Amazon down 0.2%, Meta declining 0.3%, and Alphabet falling 0.8%. Tesla also struggled, losing 1.9% as concerns over weaker electric vehicle demand persisted. However, Apple shares bucked the trend, eking out a 0.1% gain.
Other performers
Elsewhere, financial stocks were mixed as traders weighed the impact of potential Federal Reserve policy adjustments, with some analysts predicting that rate cuts could come later than previously expected. Bond yields ticked slightly higher, adding to pressure on rate-sensitive growth stocks.
