S&P 500 Down Again As Winning The Tariff War Outweighs Stock Market Returns

Key Points

• Stock Market Decline: The S&P 500, Nasdaq, and Dow are all down today, moving into correction territory amid concerns over trade policies and market volatility under the current administration.
• Company Updates: Intel’s stock rises following a CEO announcement, while Dollar General sees growth as it reflects on consumer spending challenges, particularly among lower-income groups.
• Nearly 4 million Americans will retire this year, but many don’t know if they’re ahead, or behind. You can see where you stand with just a few quick questions and discussing with a financial advisor. Click here to learn more. (sponsor)

Stock Market Performance as of 1:45 PM (Eastern);

• S&P 500 is down 89.40 points (-1.60%)
• Nasdaq Composite is down 423.71 points (-2.16%)
• Dow Jones Industrial Average is down 644.95 points (-1.56%)

The S&P 500 gave up the small gains it made yesterday and much more, down -1.60% so far today and again moving into market correction territory for the 2nd time this week. In fact, the S&P 500 is now down -8.11% since President Trump took office on January 20th, which is a wide difference from his first term where the index was up 4.5% over the same number of days.

This shift has raised concerns among investors, particularly as the current administration’s trade policies, including recent tariff threats, contribute to market volatility. The part that really has investors on edge is the indifference among the Trump administration about the markets performance.

In response to these developments, former Treasury Secretary Steven Mnuchin dismissed recession fears, attributing market fluctuations to overreactions to the administration’s policies. He characterized the recent market movements as a “natural and healthy correction,” expressing confidence that the economy would remain robust despite current challenges.

Furthermore, White House Press Secretary Karoline Leavitt defended the administration’s tariff strategy, asserting that such measures are targeted at foreign entities and do not constitute tax increases for American consumers. She emphasized that tariffs are a tool for addressing trade imbalances and protecting domestic industries.

Each day brings more tariff retaliation, today’s being President Trump’s announcement of a 200% tariff on European wines and spirits unless the European Union removes tariffs on U.S. whiskey.

One theory is the current administration is more than okay with a drop in asset prices in way of lowering interest rates. The United States has $9.2 trillion dollars in debt to payoff or refinance this year and a recession could be the fastest way for the Fed to pump more money the system and lower rates, dropping the cost of refinancing the maturing debt.

Market Winners and Losers

Intel (INTC) is up again today (+13.64%), announcing Lip-Bu Tan as CEO. Tan, former CEO of Cadence Design Systems, faces challenges, including Intel’s shrinking market share and struggling foundry business. This comes after reports yesterday that Taiwan Semiconductor (TSM) proposed a joint venture with Nvidia (NVDA), AMD (AMD), Broadcom (AVGO), and possibly Qualcomm (QCOM) to acquire Intel’s foundry. The deal, which aims to maintain U.S. control, could reshape the semiconductor landscape.

Dollar Tree (DLTR) and Dollar General (DG) are both up big today after Dollar General CEO Todd Vasos warned that low-income Americans’ financial conditions have worsened over the past year and working-class and middle-class Americans are also spending less. Value retailers could see a shift in customers as more Americans find ways to stretch their budgets.

Adobe (ADBE) is down 13.53% after reported an earnings beat with $5.08 per share, surpassing expectations of $4.97, and revenue exceeding $5.7 billion. Despite this, several analysts downgraded the stock, causing it to fall 13.6%. The decline is attributed to Adobe’s weaker-than-expected guidance for Q2 and full-year 2025, forecasting earnings between $20.20 and $20.50 per share (non-GAAP), leading to a less optimistic outlook for the company.

By Joel South