Market Recap: S&P 500 Faces Headwinds with Trade Tariff Woes

The S&P 500 managed to close higher on Monday, rebounding from six-month lows. However, the index finished the first quarter 5% down, ending its five-quarter winning streak.

Major Index Performance (Monday’s Close):

• Dow Jones: +431 points (+1%)
• S&P 500: +0.5%
• NASDAQ Composite: -0.2%

Concern persists as President Trump’s April 2 “liberation day” deadline for additional trade tariffs approaches.

Trump’s Tariffs: A Potential Disruption?

White House Press Secretary confirmed new tariffs will be based on country, not sector.

Key Tariff Developments:

• A 25% tariff on all non-American cars takes effect April 2.
• Additional tariffs on commodities, semiconductors, and pharmaceuticals are anticipated.
• Market fears are growing over higher inflation and slower U.S. economic growth due to rising import costs.

Goldman Sachs Forecast:

• 35% chance of a U.S. recession in the next 12 months.
• Inflation is expected to remain above the Federal Reserve’s 2% target in 2025.

Key Market Events This Week

March Jobs Report – Essential Indicator

The U.S. labor market is a critical focus with several job-related data releases this week.

Expectations for March’s Jobs Report (Friday Release):

• 139,000 new jobs added (vs. 151,000 in February)
• Unemployment Rate: Expected to hold steady at 4.1%

Major Economic Releases Before Friday:

• Private hiring data
• Job openings figures
• Manufacturing activity reports

Recently, the PCE inflation report—the Fed’s preferred inflation gauge—came in stronger than expected, prompting concerns over delayed rate cuts.

Stock-Specific Moves

Tesla (NASDAQ: TSLA) – Monitoring Q1 Deliveries
Tesla is set to announce first-quarter deliveries on April 2, with anticipated declines due to:

• Weak demand
• Protests at showrooms linked to Elon Musk’s political controversies

CoreWeave (NASDAQ: CRWV) – Post-IPO Decline
The Nvidia-backed CoreWeave saw a 7% drop in stock value subsequent to its Friday IPO.

Mr. Cooper Group (NASDAQ: COOP) – Shares Surge on Acquisition
The company’s shares have risen 14% following the announcement of a $9.4 billion buyout deal by Rocket Companies.

Vaccine Stocks Slump on FDA Developments
Shares of Novavax (NVAX), Taysha Gene Therapies (TSHA), and Solid Biosciences (SLDB) have fallen sharply after Peter Marks, a key vaccine official, resigned amid concerns regarding the overhaul of Trump’s federal health agency.

Tracking Market Trends – Real-Time Data

Stay updated with the latest market movements using these APIs:

• Sector Historical API: Monitor historical sector performance to better understand the impact of uncertainty around tariffs.
• Earnings Calendar API: Gain insight into upcoming earnings reports, including delivery data from Tesla.

Conclusion

With President Trump’s tariff plans looming, economic uncertainty remains high. Investors are carefully observing the jobs report, inflation trends, and corporate earnings for insights into market direction.

Investor Takeaway: Will tariffs trigger a market downturn, or will the economy prove resilient? How will the Fed react if inflation remains heightened? Are you prepared for potential market volatility ahead?