01.04.202520:03:22UTC+00S&P 500, Nasdaq Close Higher Ahead of Tariffs

On Tuesday, the S&P 500 experienced a 0.4% increase, the Nasdaq 100 advanced by 0.8%, while the Dow Jones ended slightly down. This occurred as investors anticipated President Trump's clarification on his forthcoming tariff policies. Leading the day's gains were consumer discretionary stocks, notably Tesla, which climbed by 3.6%, and Nike, which rose by 2%. The White House is poised to reveal new reciprocal tariffs and additional levies on Wednesday. This move is anticipated to surpass the scope of the Smoot-Hawley Tariff Act of 1930, which historically serves as a caution against protectionism. The possibility of imposing a 20% tariff on a broad range of U.S. imports has sparked concern, with analysts cautioning that the market may not be fully accounting for the associated trade risks. In other economic news, data revealed that the factory sector experienced further contraction in March, with price pressures reaching their highest levels since 2022. Additionally, job openings decreased to 7.57 million, falling short of expectations.