Balance sheet indicators are in turmoil. Airline stocks are falling. J&J is also sliding. Big gains for recent IPO names CoreWeave and Newsmax. Indices: Dow down 0.03%, S&P 500 up 0.38%, Nasdaq up 0.87%
Wall Street is shaky, but the S&P 500 and Nasdaq recover with gains
The US stock market finished Tuesday with key indices S&P 500 and Nasdaq Composite showing gains, despite nervousness among investors ahead of Donald Trump's statements on new tariffs.
Investors on edge: markets are in a frenzy
In recent weeks, financial markets have been trading under high volatility. The reason is concerns that the large-scale tariff initiatives by US President Donald Trump might slow down the country's economic growth and fuel inflation. Investors are balancing between caution and hope while awaiting clarity from the White House.
Markets await signals from the Rose Garden
All eyes are on Trump's speech tomorrow, scheduled for 4:00 PM ET in the White House Rose Garden. He is expected to reveal details of his tariff policy, which could provide at least some clarity in the midst of widespread speculation and rumors.
However, even if he sheds light on some measures, investors will still face overall uncertainty, both regarding the consequences of these steps and the potential reactions from the US's trade partners. This keeps the direction of future market movement unclear and difficult to predict.
Daily swings: from negative to a confident close
Against this tense uncertainty, all three major US stock indices experienced fluctuations throughout the trading session, swinging between gains and losses. It was only in the second half of the day that the positive momentum prevailed.
The day's results were as follows: the broad-market S&P 500 added 21.22 points, or 0.38%, closing at 5,633.07. The tech-heavy Nasdaq Composite strengthened by 150.60 points, up 0.87%, finishing the day at 17,449.89. Meanwhile, the Dow Jones Industrial Average slipped slightly by 11.80 points, or 0.03%, to 41,989.96.
Technology leads the charge: the Nasdaq bounces back
On Tuesday, the technology sector became the driving force for growth on Wall Street. After a rough start to the year, previously struggling IT giants began to regain ground, lifting both Nasdaq and S&P 500 indices higher.
Tesla accelerates gains ahead of earnings report
Tesla stood out, with its stock jumping 3.6% on the back of expectations for a new report on car deliveries for Q1, due to be released Wednesday. Investors are betting on positive numbers and looking for signs of demand recovery.
Other members of the so-called "Magnificent Seven" — Amazon, Microsoft, and Meta Platforms — also showed strong growth, rising between 1% and 1.8%. This bolstered the Nasdaq and injected some technological optimism into the market.
Healthcare and airlines drag the market down
However, it wasn't all rosy on the markets. The S&P 500 faced pressure from the healthcare and transportation sectors, which ended in the red due to corporate and legal setbacks.
The real loser of the day was Johnson & Johnson. Shares of the pharmaceutical giant plummeted by 7.6%, showing the worst performance among all companies in the index. The reason: a setback in court, where a US bankruptcy judge rejected J&J's proposal to settle talc-related lawsuits for $10 billion. The lawsuits involve a long-standing dispute regarding talc-based products, which tens of thousands of plaintiffs link to cancer.
The airline market is down: concerns about demand
Airlines also saw weakness. Shares of Delta, American Airlines, and Southwest tumbled between 2.4% and 5.9%. This followed a downgrade of their investment ratings by analysts at Jefferies. Financial experts expressed concern that macroeconomic uncertainty and fluctuating consumer sentiment might negatively impact demand for both business and leisure travel.
IPO newcomers soar: Newsmax and CoreWeave make waves
Amidst the general market turbulence, some IPO newcomers became true stars of the trading session. Among them was media player Newsmax, whose shares saw a dizzying surge for the second day in a row.
After a staggering debut on the New York Stock Exchange on Monday, when the company's shares rose more than 700%, on Tuesday they shot up another 208%. Given Newsmax's politically charged and Trump-loyal image, investor interest was explosive.
Startup CoreWeave rises after a shaky debut
Another recent IPO participant, AI company CoreWeave, also impressed investors. Despite a shaky debut after listing on Friday, its shares gained an impressive 41.8% on Tuesday, exceeding the offering price. This signals strong demand for shares in AI companies, despite market risks.
Gold finds support, Asia fluctuates
While some investors chase the hype around new listings, others focus on more conservative assets. Gold prices have started showing signs of revival — the metal is traditionally viewed as a "safe haven" amid geopolitical and economic uncertainty.
Asian markets, meanwhile, remained within a range of moderate volatility. Despite a shaky start, they managed to avoid sharp declines, following a more confident end to trading on Wall Street. European futures are signaling a calm but cautious start.
A ticking tariff bomb
Investors are still keeping an eye on "D-day" — Donald Trump's planned statement on Wednesday, which he has termed "Liberation Day." Essentially, this involves a large-scale initiative to impose new import tariffs, both against strategic adversaries and traditional US allies.
The announcement ceremony is set for 8:00 PM GMT and will take place in the symbolic location of the White House Rose Garden. Although market participants are expecting specifics, real relief from uncertainty is not anticipated.
Rapid measures, harsh responses
Perhaps the most worrying detail is the lack of a negotiation phase. According to available information, tariff measures will be implemented immediately, sharply reducing the space for diplomatic maneuvers and, conversely, increasing the likelihood of a swift response from the affected countries.
This creates a foundation for heightened volatility in the markets in the coming days, from forex rates to stock indices. Analysts do not rule out sharp jumps and new panic sell-offs.
Tariff storm: metals, cars, and China under attack
The White House has already taken initial steps in implementing a tough trade strategy. Donald Trump imposed tariffs on key import categories — from aluminum and steel to automobiles. Additionally, he significantly raised tariffs on a wide range of Chinese products. These actions have sparked reactions in global markets, fueling fears of a trade confrontation that could paralyze global economic growth.
Economists sound the alarm: the threat of a full-scale trade war is becoming more real
Tensions between Washington and its key trading partners, including Beijing, threaten to move beyond diplomacy and into a phase of systemic conflict, which could hit global supply chains and slow down the recovery of the world economy.
Gold shines amid growing anxiety
Amid rising risks, investors are flocking to safe assets, particularly gold. The "yellow metal" is steadily reaching new historical highs, surpassing the psychological mark of $3000 per ounce.
Since the beginning of the year, gold has risen by 19%, continuing its steady upward trend following an outstanding 2024, when its value surged 27% — the best year for the precious metal in the past decade. This price increase reflects not only fears of geopolitical and economic shocks but also rising demand from central banks and large institutional players seeking to preserve capital amid instability.
Not gold, but a barometer of fear
In an environment where markets are fluctuating from conflicting signals — from tariff threats to unstable inflation and unclear interest rate outlooks — gold once again serves as a universal gauge of anxiety. Its rise reflects not only demand for stability but also how deeply concerns are embedded among investors.
