4:12pm: Eyes on Trump
US stocks finished Tuesday’s session on positive footing ahead of Trump’s highly anticipated tariffs announcement.
The Nasdaq added 0.9% at 17,449 points while the S&P 500 added 0.4% at 5,633 points and the Dow Jones was flat at 41,989 points.
3:47pm: Gold gains
It has been another shining day for gold, which reached a new all-time high just above $3,150 per ounce.
The yellow metal continues to attract investors seeking safe-haven assets ahead of the announcement of reciprocal tariffs by US president Donald Trump and weakness in US economic data.
"US stock indices extended losses after weaker-than-expected manufacturing data while the gold price surged to a new record high,” IG senior technical analyst Axel Rudolph said.
"The gold price hit a new record high for a fourth consecutive day and is on track for its fifth straight week of gains amid flight-to-safety inflows with the precious metal nearly hitting the $3,150 per troy ounce mark.”
3:10pm: Tuesday's headlines
Tesla rivals including BYD Co (HKG:1211, OTCQX:BYDDY), Xpeng Inc (NYSE:XPEV) and Xiaomi have posted strong delivery figures for March and the first quarter, pointing to a solid recovery in China’s auto market following a seasonally weak start to the year. The releases set the stage for Tesla’s own first-quarter deliveries and production numbers on Wednesday.
Johnson & Johnson (NYSE:JNJ) shares moved almost 5% lower after a US bankruptcy judge rejected its $10 billion settlement proposal which sought to resolve tens of thousands of lawsuits alleging its talc-based products caused ovarian cancer.
OpenAI has raised $40 billion in a landmark funding round, valuing the ChatGPT developer at $300 billion, the largest capital raise ever for a startup.
The American Hooters business has filed for bankruptcy in Texas as it looks to restructure its finances by selling all 151 of its company-owned restaurants.
2:18pm: 'Make America Wealthy Again'
President Trump is set to announce “reciprocal” tariffs on Wednesday at 4 pm ET in the White House Rose Garden, calling the event “Make America Wealthy Again.”
Trump has dubbed the day “Liberation Day” and plans to raise U.S. duties to match the import taxes of other countries. It remains unclear how these tariffs will affect Canada or whether a temporary pause on broader tariffs will end.
A White House official said no decision has been made on reinstating duties on Canada and Mexico, which Trump has tied to fentanyl concerns.
The tariffs are set to take effect on April 2.
1:20pm: Construction spending improves
Total construction spending improved 0.7% in February, and although gains were broad-based across major categories, an increase in residential spending drove the overall rise, Wells Fargo noted.
Despite high interest rates, a structural shortfall of housing continues to support new single-family and home improvement outlays, according to Wells Fargo. On the nonresidential side, increases in infrastructure, industrial and institutional project spending helped offset a drag from commercial development.
Analysts noted that February's construction data were broadly positive, however uncertainty regarding trade policy has reduced visibility for the path ahead.
During February, the American Institute of Architects (AIA) reported the first decline in new project inquiries since the throes of the pandemic in 2020. The drop reflects a building stack of uncertainty related to new tariffs, monetary policy and economic growth and suggests a weaker pace of construction spending moving forward.
12:45pm: Nasdaq stays in the green
The Nasdaq climbed 0.6% by midday Tuesday, leading gains among major US stock indexes as technology stocks outperformed. The S&P 500 edged up 0.2%, while the Dow Jones Industrial Average slipped 0.1%.
Investors remained focused on corporate earnings and economic data, with upcoming Federal Reserve commentary also in the spotlight. Tech heavyweights helped lift the Nasdaq, extending last week’s momentum following a pullback in Treasury yields.
12:10pm: Manufacturers seek clarity
Efforts to get ahead of tariffs and reduce import exposure are pushing prices higher, while ongoing uncertainty is weighing on demand, leaving manufacturers seeking clarity, according to analysts at Wells Fargo.
"Manufacturers are ultimately longing for clarity around tariffs, the economic landscape and around Fed policy," analysts wrote.
"We expect manufacturing activity is apt for a recovery once uncertainty subsides after seeing low levels of growth in recent years.
"There's hope tomorrow will bring some clarity around additional tariff policy, although it's unlikely to be a cure all, as it could spark retaliation from other countries and the Trump Administration can further adjust policies going forward."
11:40am: ISM 'stinker'
The ISM Manufacturing PMI fell to 49.0 in March from 50.3 in February, missing expectations of 49.5. Prices paid surged to 69.4, the highest since June 2022, while inventories increased as manufacturers prepared for higher tariffs. New orders and employment indices declined, signaling broader weakness.
Separately, U.S. job openings fell to 7.568 million in February, below expectations, with the job openings rate dropping to 4.5%, the second-lowest since the pandemic-era labor shortage. Hiring, quits, and layoffs remained stable.
Construction spending rose 0.7% in February, exceeding forecasts, though January’s decline was revised lower. Year-over-year, construction spending increased 2.9%, with residential spending up 1.3% in February but driven entirely by improvements. Private nonresidential spending rose 0.4%, while public construction spending increased 0.2% on the month and 6.0% on the year.
Comerica's Bill Adams called it "a stinker of a report."
"The manufacturing industry is reacting poorly to higher tariffs.
"The ISM manufacturing PMI would have been even worse than the headline if not for positive contributions from inventory stocking and higher prices, which the survey is designed to interpret as signs of improving demand.
"New orders are falling and businesses are ramping up activity to front-run tariffs, meaning that manufacturing will likely weaken further in coming months."
10:46am: Toxic combination
US stocks posted their worst quarterly performance since 2022, with the S&P 500 dropping 4.6% in Q1 2025.
Nigel Green, CEO of deVere Group, warned that market pain isn’t over, citing concerns over President Trump’s escalating tariff war, which could lead to slowing growth and rising inflation.
Investors shouldn’t expect a rebound soon, he cautioned.
“Markets are being hit on multiple fronts—and it’s all pointing toward further downside risk in the near term,” Green commented.
“We are seeing the early signs of a stagflationary environment emerging, driven not by external shocks but by deliberate policy. That combination is a toxic one for equities.”
9.55am: Dow falls but Nasdaq flat at the open
US stocks have begun April on the back foot.
The S&P 500 has opened Tuesday trading down 0.2%, while the blue-chip Dow Jones has dropped 0.4% while the tech giants of the Nasdaq are just below flat.
The Russell 2000, the index most exposed to the US domestic economy, is down 0.8%.
Travel stocks Delta Air Lines, United Continental, Southwest Airlins and Norwegian Cruise Line are among the big fallers on the S&P, along with Johnson & Johnson and Intel.
Among the tech giants, Apple and Nvidia are down 0.7%, Telsa is up 1.5%, while on the Nasdaq, Intel is joined by ARM, NXP and Texas Instruments as semiconductor stocks are sold off.
7.55am: Bets on subdued start for US stocks
Investors are betting on US stocks starting April in a subdued mood, with futures pointing to losses for all the main indexes.
Futures for the S&P 500 and Dow Jones were down 0.6%, while those for the tech heavy Nasdaq 100 were down 0.55%.
US bond yields were also down, though, with the 10-year Treasury easing to a month's low of 4.163%.
Wall Street ended with a mixed close at the start, with the Dow rebounding 1%, while the S&P reversed early losses to rise 0.6%, though the Nasdaq slipped 0.1%, dragged down by declines in Tesla and Nvidia.
A day before President Trump's 'liberation day' of reciprocal tariffs, Tuesday is scheduled to see JOLTS jobs, construction, ISM and PMI manufacturing surveys and ISM prices paid data.
The JOLTS data is the "all-important" number of the day, said market analyst Kenny Polcari at Slatestone Wealth, though he noted that tariffs announcements and implementation were "just hours away".
The JOLTS report, or Job Openings and Labor Turnover Survey, tracks job openings, hires, and quits, layoffs and other exits across the US.
Job openings are expected to be 7.655 million – down from 7.740 million, while worker confidence will be signalled by the "quits rate" of voluntary separations.
"A high quits rate—like the 2.1% reported last month indicates a tight labor market where workers have leverage," said Polcari, with the market expecting 3.185 million this print, down from 3.266 million.
A cooling labor market with fewer openings and lower quits could provide some useful clues for the Federal Reserve, with easing wage pressures and inflation potentially nudging the Fed towards another rate cuts.
"In short, JOLTS is a pulse-check on labor dynamics, influencing monetary policy, investor sentiment, and economic forecasts. Let’s see how the market responds at 10 am."
He noted that the bonds rally that started yesterday, sending yields falling, "often signals investors expect slower economic growth. They flock to bonds as a safe haven, betting that weaker growth will reduce inflationary pressures and possibly prompt central banks like the Fed to cut interest rates.
"Lower yields often mean investors expect less need for high returns to offset rising prices, so they accept lower yields, pushing bond prices up.
"Now – like a pendulum – the arm swings too far to the left and then too far to the right…. it might suggest a bubble or herd behavior, where expectations overshoot reality. Sound familiar? A sharp rally in bonds could later reverse if growth surprises to the upside and rate cuts are taken off the table."