Stocks fell due to trade tensions, but chip stocks helped minimize losses

From Nasdaq: 2025-03-04 18:26:03

Stock indexes closed lower on Tuesday, with the S&P 500, Dow Jones, and Nasdaq 100 all down. Trade tensions escalated with US tariffs on Canada, Mexico, and China, sparking retaliation. Bank stocks and travel companies suffered losses, but a rebound in chip stocks boosted the market. Focus shifts to President Trump’s address and upcoming economic data.

Hawkish comments from NY Fed President Williams impacted stocks negatively, citing uncertainty over US tariff policy. Canada announced counter-tariffs on US goods, while China implemented tariffs on US agricultural products. Market awaits Trump’s speech and upcoming economic reports, including ISM services index and nonfarm payrolls data. Fed Chair Powell will also speak on the economic outlook.

Overseas markets varied, with the Euro Stoxx 50 dropping sharply, China’s Shanghai Composite recovering, and Japan’s Nikkei falling. Interest rates rose as T-notes closed lower after reaching a 4-1/2 month high. The Eurozone saw steady unemployment rates, while the EU proposed loan extensions for defense spending. German bond yields rose, and swaps predict a rate cut by the ECB.

Bank stocks, cruise line operators, and travel stocks faced pressure on Tuesday due to trade concerns. Tesla reported a drop in China vehicle deliveries. Chip stocks rebounded, lifting the market. Best Buy forecasted lower earnings, while Okta reported strong revenue. Walgreens saw gains on acquisition news. ON Holding and Labcorp also reported positive results. Earnings reports are expected for various companies on 3/5/2025.



Read more at Nasdaq: Stocks Fall on Trade Tensions But Chip Stocks Help Soften Losses