#OnETNOW | "Added pressure of US tariffs on D-Street," says A Balasubramanian, Aditya Birla Sun Life AMC
These are the statements on valuations, US Fed, banks and more ????@mfbala @abslmf #TrumpTariffs #StockMarket pic.twitter.com/mNjkoVIDh0
— ET NOW (@ETNOWlive) March 4, 2025
The stock market faced another tough session on Tuesday as traders grew increasingly concerned about economic growth and global trade. The S&P 500 fell 0.47% to close at 5,955.25. The tech-heavy Nasdaq Composite dropped 1.35%, ending at 19,026.39.
Meanwhile, the Dow Jones Industrial Average was an outlier, rising by 159.95 points, or 0.37%, to close at 43,621.16.
Stocks To Watch | ????Ready, set, trade! Keep an eye on these stocks as they set the market abuzz
#StockMarket pic.twitter.com/K7wW7g2j41
— ET NOW (@ETNOWlive) March 4, 2025
The market’s downturn was influenced by the latest consumer confidence survey from the Conference Board, which failed to meet expectations. This comes on the heels of other disappointing economic data from the previous week, including lackluster manufacturing and retail sales numbers.
Reports from Walmart also added to the negative sentiment around consumer health and the broader economy.
Three takeaways from quite a day in financial markets:
A sharp fall in US stocks (first chart below) as the White House confirmed a new round of tariffs as of tomorrow on Canada, Mexico (both 25%), and China (10% on top of the prior 10%).
Pushed lower by growth concerns, US… pic.twitter.com/xz6KkZ1aRo— Mohamed A. El-Erian (@elerianm) March 3, 2025
“All of that comes together to call into question the underpinning of what has been the strength of the U.S. economy the last couple years, which is the consumer and the job market,” said Ross Mayfield, investment strategist at Baird Private Wealth Management. Investors sought safety in the U.S. bond market, pushing the benchmark yield below 4.3%, its lowest level since December.
Bond yields and prices move in opposite directions.
Dow Jones defies broader market trends
Bitcoin also felt the pressure, trading at a three-month low.
Since the S&P 500 became 500 stocks in 1957 the longest streak of alternating 1% gains/losses was 5 in March 2020.
With a 1% gain tomorrow (not a crazy thought with any 'good' tariff news) this time would be up to four.
— Ryan Detrick, CMT (@RyanDetrick) March 3, 2025
The flagship cryptocurrency is nearly 20% below its all-time high reached on President Donald Trump’s Inauguration Day. Shares of major bank stocks declined due to rising recession concerns, with each of the major banks falling more than 1%. Additionally, momentum stocks that have been driving market gains also slipped.
Nvidia lost 3%, bringing its decline for the week to around 13%. Alphabet fell 1.6% during the session, and electric vehicle maker Tesla dropped more than 8%, significantly impacting its market capitalization. Escalating trade concerns added to market uncertainty.
President Trump announced Monday that tariffs on imports from Canada and Mexico would resume after the current 30-day moratorium ends. The White House is also preparing tighter restrictions on China’s semiconductor exports, according to reports. Investors are now looking ahead to Nvidia’s quarterly earnings release, scheduled for Wednesday after the market closes, for further insights into the health of the artificial intelligence sector.
Nvidia shares are down more than 5% in 2025, underperforming the broader market.
