Stocks stay on recovery path amid tariff risks, disappointing data

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US stocks inched into the green before dipping midway through Tuesday’s session, as investors shrugged off additional tariff announcements and disappointing economic news. 

The S&P 500 was mostly flat at 2 pm ET, down 0.05%. The Nasdaq Composite had gained 0.2%. 

The moves follow one of the fastest-ever declines in US equities. Between mid-February and mid-March, the S&P 500 managed to erase two years of gains. The index’s 10% decline from a record high earlier this year is the seventh-fastest drop in history. 

The Nasdaq Composite hasn’t seen a record since December 2024, and is currently down more than 5% year to date. But like the S&P 500, it has slowly been clawing back losses in recent days. 

The moves come as more tariff updates come in from Washington. President Trump yesterday announced new tariffs of 25% on any goods from countries that import Venezuelan oil, both directly and indirectly. 

The levies go into effect on April 2. Trump, however, also added that he “may give a lot of countries a break,” which presumably calmed investors enough to keep this recovery on track. Additional tariffs on cars, pharmaceuticals and other industries are also expected to be announced soon, the White House said. 

US consumer confidence data was also released Tuesday morning. If you are a US consumer, you probably weren’t surprised to see that confidence once again fell. The index is now at a 12-month low. 

The big catalyst for markets (assuming we don’t get any serious news from the White House, which is always a possibility) will come on Friday, when February’s Personal Consumption Expenditures (PCE) report drops. Analysts are expecting annual inflation to remain unchanged from January at 2.5%. We doubt Jay Powell is getting much sleep this week.

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