As investors waited for economic data and clarification on the Trump administration’s new tariffs, which are anticipated to go into effect next week, the tech-heavy Nasdaq and the benchmark S&P 500 both fell in turbulent trading on Wednesday.
Over the past two days, U.S. stocks have had a brief reprieve after President Donald Trump hinted that not all tariffs would be implemented by the April 2 deadline, with some countries perhaps receiving exemptions—though details are still unclear.
With the three main indexes hitting two-week highs earlier in the week, this provided some stability to Wall Street. Since its mid-March lows, the S&P has risen more than 4%, while the Nasdaq has risen around 6%.
However, investors have remained on edge due to uncertainty around the extent of U.S. tariffs, the possibility of trade partner retaliation, and the possible effects on the global economy and businesses.
Because of the uncertainty surrounding Trump’s tariffs, Barclays reduced its S&P 500 projection lower, from 6,600 to 5,900 points, adding to the uneasiness.
“The market is presently suspended. According to Peter Cardillo, chief market economist at Spartan Capital Securities, “Trump’s softer tariff stance appears to have made a temporary relief.”
The market “are going to be sensitive to tariffs … the White House keeps changing its position, creating uncertainty.”
The Dow Jones Industrial Average (.DJI) opened at 42,728.80, up 141.30 points, or 0.33%, at 9:58 a.m. ET. The S&P 500 (.SPX) opened at 5,757.73, down 19.38 points, or 0.34%, and the Nasdaq Composite (.IXIC) opened at 18,092.63, down 179.23 points, or 0.98%.
Heavyweight growth stocks pulled down the S&P 500. Alphabet (GOOGL.O) had a 1.5% fall in new tab openings, Nvidia (NVDA.O) saw a 3.5% decline, and Tesla (TSLA.O) saw a 3.2% decline.
