The U.S. stock market experienced a significant downturn on Tuesday, erasing the gains made during an early rally. Investor optimism regarding potential delays or concessions on tariffs waned as the crucial April 9 deadline approaches. The S&P 500 index fell below 5,000 points for the first time in nearly a year, marking a loss of $5.83 trillion in market value, and indicating the steepest decline over four days since the S&P was established in the 1950s.
Bear Market Warning Signals
The S&P 500 is edging closer to confirming a bear market, as it finished nearly 19% below its peak close on February 19. In terms of daily performance, the Dow Jones Industrial Average dropped by 320.01 points, or 0.84%, closing at 37,645.59. Meanwhile, the S&P 500 saw a decline of 79.48 points, or 1.57%, ending at 4,982.77. The Nasdaq Composite suffered even greater losses, finishing down 335.35 points, or 2.15%, at 15,267.91.
- Market Overview:
- Dow Jones: -320.01 points
- S&P 500: -79.48 points
- Nasdaq: -335.35 points
Declines Across the Board
On the Nasdaq, a staggering 3,492 stocks fell compared to just 1,002 that saw gains, creating a ratio of nearly 3.5-to-1 against advancing issues. The S&P 500 recorded no new 52-week highs, but 109 new lows, while the Nasdaq reported 17 new highs and 568 new lows.
Notable Stock Movements
Several major companies experienced sharp declines:
- Tesla: down 4.90%
- Nvidia: down 1.37%
- Advanced Micro Devices: down 6.49%
- Intel: down 7.36%
- Apple: down 4.98%
Tariff Tensions Continue
In the midst of these market fluctuations, White House Press Secretary Karoline Leavitt confirmed President Trump’s expectation that tariffs would soon take effect. Despite nearly 70 countries expressing interest in negotiating terms to mitigate the impacts of U.S. trade policies, the administration anticipates imposing 104% tariffs on China beginning Wednesday. China responded firmly, rejecting what they described as the “blackmail nature” of Trump’s tariff threats.
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