Highlights
Stocks fell Wednesday with megacaps weighing on the major averages as bond yields rose and tariff worries continued. The Dow Jones industrial average dipped 0.3 percent, the S&P 500 lost 1.2 percent, and the Nasdaq was down 2.0 percent. US bond yields, the dollar and oil prices all rose.
Reports that President Trump would announce new tariffs on autos late Wednesday hurt market sentiment as did reports he plans to accelerate tariffs on copper. These were offset somewhat by more reports suggesting the threatened reciprocal tariffs on April 2 would have even more exceptions, although these multiple conflicting reports add to the sense of unpredictability and uncertainty that has weakened investment and sentiment generally.
News that durable goods orders topped expectations hit fixed income markets and lifted bond yields, along with St. Louis Fed President Alberto Musalem's comment that tariffs are likely to mean higher inflation in the near term, although he said inflation is headed to target in 2027. He also said rates may have to stay higher for longer.
Megacaps had a bad day, including Tesla, which dropped on worries about weakening sales and concerns over the impact of tariffs. Nvidia, Amazon, Microsoft and Apple saw losses. Chipmakers were hurt by news of more restrictions on chip exports and fear over the impact of auto tariffs.
Reports that President Trump would announce new tariffs on autos late Wednesday hurt market sentiment as did reports he plans to accelerate tariffs on copper. These were offset somewhat by more reports suggesting the threatened reciprocal tariffs on April 2 would have even more exceptions, although these multiple conflicting reports add to the sense of unpredictability and uncertainty that has weakened investment and sentiment generally.
News that durable goods orders topped expectations hit fixed income markets and lifted bond yields, along with St. Louis Fed President Alberto Musalem's comment that tariffs are likely to mean higher inflation in the near term, although he said inflation is headed to target in 2027. He also said rates may have to stay higher for longer.
Megacaps had a bad day, including Tesla, which dropped on worries about weakening sales and concerns over the impact of tariffs. Nvidia, Amazon, Microsoft and Apple saw losses. Chipmakers were hurt by news of more restrictions on chip exports and fear over the impact of auto tariffs.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
