Key Points:
Tariff Tensions: U.S. tariffs on steel and aluminum imports, effective today, trigger retaliation from major trading partners, including Canada and the EU, escalating inflation concerns.
Market Movement: The S&P 500 and Nasdaq show gains, while the Dow faces a significant drop, driven by investor concerns over tariff impacts on industrial businesses.
Stock Performance: Verizon, McDonald’s, and Apple struggle with stock declines due to tariff-related challenges, while NVIDIA sees a 6.52% gain.
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Dow Jones Can’t Catch a Break
The Nasdaq Composite and S&P 500 stopped the bloodletting from the first two trading days of the week, but the Dow Jones Industrial Average (DJIA) is in free fall as more counter-tariffs continue to wreak havoc on large industrial businesses.
As of noon:
- S&P 500 is up 14.13 points (.25%)
- Nasdaq Composite is up 155.19 points (.90%)
- Dow Jones Industrial Average is down 200.81 points (-.48%)
In his attempt to revitalize U.S manufacturing, President Trump’s 25% tariffs on all steel and aluminum imports went into effect today, prompting swift retaliation from major trading partners, including Canada, the largest supplier of these resources to the U.S.
The EU is also set to impose countermeasures totaling $28 billion on a broad range of American products. This all comes on the back of today’s update on inflation in the United States. The Consumer Price Index (CPI) rose 2.8% in February, indicating persistent inflationary pressure, which won’t alleviate in the near term with increasing tariff retaliation.
How Dow Components Are Faring
Verizon Communications (VZ) saw a 3.24% decline following a downgrade to ‘Peer Perform’ by Wolfe Research, reflecting concerns over its competitive positioning and market challenges and struggles to acquire new business.
McDonald’s (MCD) and Apple (AAPL) also faced pressure, with their stock prices falling by 2.75% and 1.44%, respectively. Both stocks continue to experience investor hesitancy due to their robust supply chains which are likely to incur extensive cost increases if tariffs are in effect for several months or years.
In contrast, NVIDIA (NVDA) bucked the trend with a 6.53% gain, likely from investors moving money back into the stock at the lower price point, especially coming off a pretty stellar earnings report last month. NVIDA is expected to continue its torrent growth well into 2026 and likely beyond and the 12% haircut the stock received over the past month provides investors a nice opening to buy the AI and data center leader.
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