After a massive sell-off yesterday, markets started the day with mixed performance before turning negative. As of 2:15 pm ET, all major indexes are down:
- Dow Jones Industrial Average: -1.1%
- S&P 500: -0.65%
- Nasdaq Composite: -0.1%
Key Points:
- Tariff jitters remain, as tit for tat policies quickly move to an escalating trade war
- Beleaguered tech stocks like Tesla and Nvidia get some relief
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Market Highlights
- Tech Stocks Rebound: Nvidia (NVDA) rose nearly 3% after Bernstein analysts reiterated an “outperform” rating, encouraging investors to buy on dips. Broadcom (AVGO) also benefited from the bullish outlook, rising a similar amount
- Tesla Recovers: TSLA gained 4.7% following a sharp drop yesterday. Morgan Stanley reaffirmed its “overweight” rating, calling the pullback a buying opportunity. Former President Trump publicly supported Tesla, announcing his personal plans to buy an EV.
- Apple Drags Nasdaq: AAPL has been dragged recently following concerns about a stale product portfolio. The company is down 3.2%, weighing the Nasdaq. As the largest company in the S&P 500, the drop is having an outsized impact today.
- Southwest Airlines’ New Fees: LUV stock soared over 10% after the airline announced plans to charge for checked baggage. The company has since given back some gains and has settled around 8.9% for the day
Notable Movers:
- Meta (META): Up 2% as the company tests in-house AI chips.
- Netflix (NFLX): Up 2.6% after gaining 24 million subscribers in H2 2024.
- Kohl’s (KSS): Down 16% due to weak profit and revenue forecasts.
- Nike (NKE): Down 2% despite a positive analyst note; Barclays sees the stock stabilizing.
Trump Doubles Down On Tariffs
President Donald Trump said he would double the tariffs on Canadian steel and aluminum, going from the threatened 25% to 50% starting Wednesday.
Trump’s double down is in response to Ontario imposing a 25% tariff on electricity exports to the US, which heavily power the Northeast. The president stated his intention to declare an emergency, and demanded Canada remove tariffs on U.S. dairy products.
The quickly escalating tariffs between the United States and it’s three largest trading partners Canada, Mexico, and China have rattled the markets the last few weeks as few are able to predict the magnitude and longevity of the policies.
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