The U.S. stock market took another hit on Tuesday as concerns about economic growth and global trade tensions weighed on investors. The S&P 500 fell for a fourth straight day, dropping 0.47% to close at 5,955.25. The tech-heavy Nasdaq Composite also declined, falling 1.35% to end at 19,026.39.
The Dow Jones Industrial Average was the only bright spot, gaining 159.95 points, or 0.37%, to finish at 43,621.16. The latest consumer confidence survey from the Conference Board disappointed expectations, adding to a string of weak economic reports that have heightened fears about the health of the U.S. economy. “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.
Shares of major banks and momentum stocks, which have driven market gains recently, tumbled on Tuesday. Nvidia fell 3%, bringing its weekly losses to about 13%. Electric vehicle maker Tesla dropped more than 8%.
U.S. stocks dip amid trade unease
Palantir shares plummeted over 4%, extending its decline to more than 30% from recent highs. In the small-cap space, telehealth company Hims & Hers Health plunged more than 27% after announcing a new stock offering, despite beating fourth-quarter earnings and revenue expectations.
Krispy Kreme, Chegg, and Zoom Video Communications also saw significant declines. Investors sought safety in the U.S. bond market, pushing the benchmark yield below 4.3%, its lowest level since December. Bitcoin, which has shown correlation with stocks, traded at a three-month low, almost 20% below its all-time high.
Adding to market jitters, President Trump announced that tariffs on imports from Canada and Mexico would resume after the current 30-day moratorium ends. The administration is also reportedly preparing tighter restrictions on China’s semiconductor exports. Investors are now awaiting Nvidia’s quarterly earnings release on Wednesday for insights into the AI sector.
The ongoing economic and geopolitical uncertainty continues to create a challenging environment for the markets, with volatility expected to remain a key theme in the short term.
