Agencies
New York
US stock indexes struggled for direction in topsy-turvy trade on Tuesday, initially bouncing off session lows before losing some momentum into the afternoon session, as investors awaited details on fresh US tariffs set to be announced on Wednesday.
Financial markets had been volatile in recent weeks as investors assessed the economic fallout of US President Donald Trump’s extensive tariff plans, which have sparked worries about a US economic slowdown and higher inflation.
The benchmark S&P 500 closed the first quarter 4.6 percent lower, marking its most dismal three-month stretch since July 2022.
“The market is pricing in the worst-case scenario, and if we aren’t yet at washout levels then we’re pretty close,” said Gina Bolvin, president of Bolvin Wealth Management Group in Boston. “I wouldn’t be a seller into this correction.”
White House aides have drafted plans for 20 percent tariffs on most goods imported to the United States, the Washington Post reported on Tuesday. Trump is due to unveil his tariff plan at 4 pm EDT at an event in the Rose Garden on Wednesday. After falling about 1 percent earlier, the S&P 500 gained ground through support from beaten-down technology shares, before momentum ebbed into the afternoon.
At 1:54 pm EDT, the S&P 500 had gained 6.92 points, or 0.12 percent, to 5,618.70 points. Big tech names remained a source of support, led by Tesla, which gained 6.4 percent ahead of its first-quarter vehicle deliveries report on Wednesday. Other Magnificent Seven stocks, including Amazon.com, Microsoft, Nvidia and Meta Platforms rose between 0.5 percent and 1.7 percent.
The benchmark index, however, was weighed down by falls in healthcare and airlines.
Johnson & Johnson fell 6.1 percent, the biggest percentage drop in the S&P 500, dragging the broader healthcare sector to the bottom of the 11S&P sectors.
