Stocks Waver as Trade War Concerns Linger

The S&P 500 and Nasdaq experienced slight declines on Tuesday as investors carefully analyzed a series of corporate earnings reports and economic indicators. New remarks regarding the U.S.-China trade situation further dampened expectations for a swift resolution.

U.S. Treasury Secretary Scott Bessent stated that the “burden” rests on China, suggesting that the country could rapidly lose 10 million jobs due to imposed tariffs.

The world’s two leading economies have been engaged in a reciprocal imposition of import tariffs, and the ambiguity surrounding the state of negotiations has kept markets unsettled.

At 10:01 a.m. ET, the Dow Jones Industrial Average increased by 113.62 points, or 0.28%, reaching 40,341.21. Meanwhile, the S&P 500 decreased by 4.50 points, or 0.08%, settling at 5,524.25, and the Nasdaq Composite fell by 30.26 points, or 0.17%, to 17,335.59.

Honeywell’s shares surged by 4.2% following the announcement of an increase in adjusted profit for the first quarter, providing support to the Dow. Sherwin-Williams, a paint manufacturer, also saw gains of 5.2% after exceeding first-quarter profit forecasts.

Most megacap stocks declined during the day, with Amazon.com leading the losses after the White House addressed reports that the e-commerce giant intends to include tariff costs in product prices, labeling it as a hostile action.

Regarding economic data, U.S. job openings in March totaled 7.19 million, below the estimated 7.48 million, according to economists surveyed. A consumer confidence measure registered at 86, falling short of the anticipated 87.5.

More economic data, including nonfarm payrolls, is expected this week. Results from numerous “Magnificent Seven” megacap stocks are also anticipated, with investors closely monitoring any indications of tariff impacts on their projections.

Matthew Stucky, chief portfolio manager at Northwestern Mutual Wealth Management, noted that many investors, consumers, and business leaders are uncertain about the future as potential tariffs take effect.

U.S. officials announced on Monday that President Donald Trump’s administration intends to mitigate the effects of automotive tariffs.

Shares of Ford and Tesla saw minor increases, while General Motors experienced a 1.9% decline after retracting its annual forecast due to tariff-related uncertainty.

Bernstein analysts commented that while suppliers might recover some costs, the relief does not address the longer-term issue: U.S. car prices are increasing as economic momentum slows.

Despite the S&P 500’s recent winning streak, all three major indexes remain down for the year. HSBC recently lowered its year-end target for the S&P 500 index from 6,700 to 5,600.

United Parcel Service, a key economic indicator, reversed premarket gains to fall 1.2% after its quarterly results.

NXP Semiconductors NV dropped 6.4% after barely surpassing revenue expectations and announcing a CEO transition.

U.S.-listed shares of Spotify Technologies declined by 8.4% after the Swedish music-streaming company predicted current-quarter operating profit below Wall Street’s estimates.

Declining issues outnumbered advancers by a ratio of 1.35-to-1 on both the NYSE and the Nasdaq.

The S&P 500 reported no new 52-week highs and 4 new lows, while the Nasdaq Composite recorded 14 new highs and 32 new lows.