4:16pm: Stocks climb across the board
US stocks ended Tuesday with broad gains, as investors showed continued confidence in the economic outlook.
The Dow rose 300 points, or 0.8%, to close at 40,528. The S&P 500 climbed 32 points, or 0.6%, to finish at 5,561, while the Nasdaq gained 95 points, or 0.6%, closing at 17,461.
The Russell 2000, which tracks small-cap stocks, added 9 points, or 0.5%, to end the day at 1,974.
3:45pm: Consumer confidence falls
US consumer confidence fell in April, marking the fifth consecutive monthly decline and reaching its lowest levels since the onset of the COVID-19 pandemic.
According to the Conference Board’s Consumer Confidence Index, consumer confidence fell by 7.9 points to 86 in April from 92.9 in March.
“Consumer spending should look better than GDP, but it were flattered in the quarter by consumers’ panic-buying of cars and other goods ahead of higher tariffs,” Comerica's Bill Adams said. “Given how freaked out consumers are, consumer spending likely slowed sharply in April.”
3:06pm: Trump hits 100 days
Donald Trump is marking the 100-day mark in his second presidency by reshaping both domestic institutions and the global economic order.
Trump’s swift policy actions—ranging from aggressive tariffs to civil service overhauls—have served as a stress test for US governance and financial markets. The resulting volatility, coupled with rising inflation expectations and a weakening dollar, has prompted investors and global allies to reassess their exposure to US assets and alliances, underscoring the high stakes of his second term.
Nigel Green, CEO of deVere Group, called the early impact of the Trump administration “unprecedented in both speed and scale.”
“The speed, scale, and shock value of the Trump administration’s early moves have stunned investors and hammered traditional safe havens,” said Green. “In just over three months, he has unleashed a new era of uncertainty, volatility, and rapid transformation that’s reshaping global markets in real time.”
Read more here.
2:05pm: Weak start for US economy in 2025
A series of economic indicators released this week point to a weakening U.S. economy in early 2025, with the trade deficit hitting a record high, job openings declining sharply, and consumer confidence plunging to levels not seen since the pandemic lockdowns.
According to Bill Adams, Chief Economist at Comerica Bank, these developments are setting the stage for the weakest GDP reading since the first half of 2022. “
First quarter GDP will likely be the weakest quarter since the first half of 2022, when inflation was surging, the Fed was turning off the QE tap, and consumer confidence and financial markets were falling,” Adams said, noting Comerica expects a 1.4% annualized contraction.
The March trade deficit widened to $162 billion, driven by a 27.5% jump in consumer goods imports as businesses tried to get ahead of potential tariffs. At the same time, job openings in March dropped to the second-lowest level since early 2021, and the Conference Board’s Consumer Confidence Index fell to 86.0—its worst since 2020.
Housing data also showed signs of softening, with annual home price gains slowing.
Adams warned that “unless something changes quickly to reassure Americans that the economy will be okay,” both consumer and business spending could retreat further in the second quarter.
1:02pm: Good news for automakers
US President Donald Trump is set to sign an executive order providing a reprieve for automakers from some of his administration’s steep 25% tariffs on imported vehicles and auto parts.
This order comes following significant pressure from the automotive industry, which warned that the tariffs could raise vehicle prices, reduce sales, and threaten jobs in the sector.
As first reported by The Wall Street Journal, the order will ensure that automakers are not subject to multiple overlapping tariffs. For example, vehicles and parts already facing the 25% auto tariff will not be hit with additional tariffs on steel and aluminum, which are also used in car manufacturing.
Additionally, automakers will be eligible for partial reimbursements on tariffs paid for imported auto parts used in US-made vehicles.
The reimbursement will be up to 3.75% of the value of a US-manufactured car for the first year, then 2.5% in the second year, before being phased out completely.
The changes are expected to be retroactive, allowing companies to receive refunds for certain tariffs already paid.
12:28pm: Dow out front
Stocks are inching higher across the board, with the Dow Jones leading the way, up 0.7%, as investors rotate into blue-chip names like industrials and consumer staples following solid quarterly earnings.
The S&P 500 is also in the green, rising 0.3% as it continues its recent winning streak, fueled by optimism around corporate results and anticipation of new data on jobs and consumer confidence.
Meanwhile, the Nasdaq is up a more modest 0.2%, lagging slightly as tech stocks trade mixed ahead of key earnings from the so-called "Magnificent Seven" later this week.
Treasury yields are holding steady, with the 10-year at 4.23%,
11:55am: Tuesday's headlines
Amazon.com Inc (NASDAQ:AMZN) shares fell 1.5% after the company's intention to lay out the costs of tariffs to customer on its website was labelled a "hostile piolical act" by the White House.
General Motors Company (NYSE:GM) shares fell 2% after the automaker pulled its 2025 full-year guidance, which it noted did not consider the impact of tariffs.
Spotify Technology SA (NYSE:SPOT) shares slumped as the music streaming platform’s first quarter earnings and profit forecast fell short of analyst expectations, despite strong subscriber growth.
In Canada, the Liberal Party secured a minority government in Monday’s federal election, propelling Mark Carney to the role of prime minister and marking a rapid political ascent amid voter concerns over affordability and rising tensions with the US.
11:24am: Employers grow more cautious
The March Job Openings and Labor Turnover Survey (JOLTS) pointed to a further cooling in labor demand, with job openings falling more than expected to 7.2 million, just above the September 2023 low.
Hiring remained steady, but a modest uptick in quits suggests some employers are still backfilling roles. Meanwhile, the layoff rate edged lower, reflecting employers' reluctance to shed staff despite the uncertain economic outlook.
“Uncertainty has crimped already-flagging labor demand,” Wells Fargo analysts wrote, noting that the job openings-to-unemployed ratio slipped to 1.02. “In our view, the resumption of this ratio's decline in the past month is reflective of a steady weakening in labor demand, rather than a benign rebalancing of supply and demand.”
The report showed broad-based weakness across industries. Goods-related sectors, such as transportation and warehousing, saw a drop of 59,000 openings, reversing earlier gains tied to front-running tariffs. Public sector hiring also cooled, with state and local governments and federally funded industries pulling back amid funding constraints. The federal government recorded 36,000 fewer openings—its lowest level since 2020.
Wells Fargo emphasized that while the appetite for new hiring has faded, employers are still holding on to current staff. As the analysts put it, the labor market is “treading water in a choppy sea,” vulnerable to disruption if growth continues to weaken.
10:45am: Carney holds on as Canadian PM
The Liberal Party secured a minority government in Canada's federal election on Monday, propelling Mark Carney to the role of prime minister and marking a rapid political ascent amid voter concerns over affordability and rising tensions with the US.
The Liberals were projected to win or lead in 168 of 343 parliamentary seats, according to CTV News, falling short of the 172 needed for a majority but defeating Conservative leader Pierre Poilievre, whose party was ahead in 144 ridings. The result delivers a fourth consecutive Liberal victory and sidelines Poilievre, whose increased vote share failed to translate into power.
The election followed a bruising campaign dominated by cost-of-living pressures, new U.S. tariffs, and inflammatory comments from former U.S. President Donald Trump, who suggested Canada’s sovereignty could be at risk. In his victory speech, Carney vowed to “never, ever” let such rhetoric take hold.
9.51am: Mixed open, Amazon in firing line
It has been a mixed open on Wall Street, with the S&P 500 flat, the Dow Jones up 0.4% and the Nasdaq down 0.1%.
On the Nasdaq, all but three of the top 20 largest companies are in the red, with Amazon down 1.5%.
It comes after the Trump administration accused Amazon of a "hostile political act", after the company indicated it was going to lay out the cost of tariffs to its consumers.
This shows, says market analyst Kathleen Brooks at XTB, the White House is changing tack.
After the Trump administration accused Amazon of a "hostile political act", after the company indicated it was going to lay out the cost of tariffs to its consumers, market analyst Kathleen Brooks at XTB said the White House is changing tack.
"The US administration has mostly saved its ire for other countries that it believes gives the US a raw deal in global trade.
"Now it appears that the US administration is targeting US companies who question the logic of its moves.
"This is significant. Financial markets have been roiled by political interference in the global economy in recent weeks. Investors do not digest political risks well, so if the Trump administration is now publicly accusing US companies of hostile acts if they disagree with the President’s US economic policy then this could stop the recent recovery rally in risky assets."
Brooks said the Vix index was ticking higher on the back of these comments.
President Trump is scheduled to speak later on Tuesday and, said Brooks, "if he doubles down on criticism of Amazon, it will be worth watching the market reaction".
9.10am: Trade deficit widens
The US trade deficit for March widened to $162 billion last month, up from $147.8 billion in February, much larger than expectations.
The 12-month total is now $1.4 trillion, a record high.
The data does not include the impact of Trump’s reciprocal tariffs, but it looks perfect material for the US President.
Ahead of the release he said on social media that "The USA lost Billions of Dollars A DAY in International Trade under Sleepy Joe Biden. I have now stemmed that tide, and will be making a fortune, very soon."
The US’s goods deficit with China is roughly the same as China’s goods surplus with the US, analysts noted, but should is expected to narrow in the coming months.
8am: Dow Jones called higher, and Dow Jones lower on Tuesday
US stock market indexes are set for another mixed session on Tuesday, as a busy week for earnings continues, with numbers from General Motors, Pfizer, Visa, Coca-Cola and Spotify amongst the major corporates reporting.
Ahead of the open, Dow Jones futures were up 0.3%, while those for the S&P 500 were flat and for the Nasdaq 100 down 0.1%.
That would roughly echo the moves from the previous day, when the S&P finished just above flat, the Dow Jones added 0.3% and the Nasdaq ended 0.1% to the bad.
In Europe on Tuesday, markets were mixed, with the FTSE 100 and DAX on course for small gains, but other national benchmarks in the red.
The latest in Donald Trump trade war was that Treasury Secretary Scott Bessent stated that China is "on hold" for now as the US continues tariff talks with 15 to 17 other trading partners.
The onus, Bessent said, is on Beijing to take the next step. Overnight, the US also confirmed that auto tariffs will not extend to steel and aluminium, calming some sector-specific concerns.
Meanwhile, China’s foreign ministry released a video entitled “China to US: Never Kneel Down,” released in English on YouTube, saying the country won’t capitulate and providing a rallying cry to other trading partners.
The video cites US action against Japan’s Toshiba and France’s Alstom as what it says are examples of how the U.S. abuses its power.
Alongside a post by the Chinese Foreign Ministry on its new social media account, spokesperson Guo Jiakun told press that "we hope this video could help all parties better understand China's position".
Back on stocks, and many indexes on both sides of the Atlantic are back within sight of where they were before the full extent of Donald Trump's ‘liberation day’ tariffs were known, pointed out market analyst David Morrison at Trade Nation.
"The slump in equities which followed President Trump’s announcement of reciprocal tariffs on ‘Liberation Day’ 2nd April, may be remembered for some time, at least until there’s some form of resolution.
"But, as happened with tariffs during Mr Trump’s first term as President, his tariff threats have already been watered down to some extent. Trump’s various rollbacks have led to a resurgence in risk appetite which has helped to lift all the US majors off very oversold levels.
"For now, risk appetite remains intact, but markets still feel a touch fragile."
In company news, UPS shares were up 2% in premarket trading as its earnings beat Wall Street expectations and it announced plans to cut 20,000 jobs this year due to anticipated lower volumes from "our largest customer", by which it means Amazon.
General Motors was down 2% after the carmaker beat profit and revenue estimates and said that it is updating its full-year guidance.
“The company’s initial full year 2025 financial guidance does not contemplate the potential impact of tariffs,” the company said.