U.S. Stock Market Faces Losses Amid Tariff Announcements

Monday closed out March and the first quarter of 2025 with the Dow Jones Industrial Average (DJI), Nasdaq Composite (IXIC), and S&P 500 Index (SPX) all registering monthly and quarterly losses. Notably, the IXIC and SPX experienced their worst monthly percentage declines since December 2022, marking their first quarterly losses since September 2023.

Stocks struggled to find direction amidst rumors of a 20% tariff on all U.S. imports. These concerns intensified when President Donald Trump announced a wave of levies on Wednesday evening. The stock market reacted sharply, leading the SPX back into correction territory and contributing to the most significant single-day percentage drops for all three indexes since 2020. By Friday morning, the Nasdaq was facing a nearly 10% weekly loss, with the other indexes not far behind, all on track for their worst weeks since 2020.

Best and Worst Buys for Q2 and April

A new month and quarter signal fresh historic data from Schaeffer’s Senior Quantitative Analyst Rocky White, providing insights into potential stock picks for your spring portfolio. Amazon.com (AMZN) is highlighted as an exceptional performer during the second quarter and April. In contrast, chip leader Intel (INTC) seems less likely to benefit in the months ahead. Additionally, commodity stock EQT (EQT) is showing a “buy” signal, while controversial airline manufacturer Boeing (BA) may appeal to bearish traders.

Stocks React to Tariff Uncertainty

Many stocks faced significant losses following the tariff announcement, but three gold mining stocks managed to remain resilient amid the selloff. Retail giants Nike (NKE) and Target (TGT) encountered additional challenges, while Apple (AAPL) experienced its worst day since the Covid crash. Semiconductor stocks also plummeted, and equipment manufacturers Deere (DE) and Caterpillar (CAT) caught the attention of put traders in the options market. Even exchange-traded funds (ETFs) were affected, with the Invesco QQQ Trust (QQQ) posting losses on Friday.

Bank Earnings Set to Kick Off Q2

The second week of April will bring a wave of inflation data and Federal Reserve commentary. As earnings season begins, several prominent companies are preparing to report. Delta Air Lines (DAL) will provide insights into travel demand for the coming summer midweek. Later in the week, major financial institutions will report their quarterly results, including BlackRock (BLK), JPMorgan Chase (JPM), Morgan Stanley (MS), and Wells Fargo (WFC).

For further insights, check out Schaeffer’s Senior Quantitative Analyst Rocky White’s report on the SPX’s short-term bull signal, which is poised to encounter a longer-term alarm on Wall Street. A potential hold on the SPX’s “V-shaped rally” may also be in the cards, according to Schaeffer’s V.P. of Research, Todd Salamone.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.