Wall Street closed mixed on Tuesday to finish the first trading day of second-quarter 2025 after a choppy session. Market participants remained concerned of Trump’s tariffs, higher inflation rate and fear of a near-term recession. Several weak economic data also dampened investors’ sentiment. The S&P 500 and the Nasdaq Composite ended in positive territory while the Dow finished in negative zone. However, the movements in either direction were subdued.

How Did The Benchmarks Perform?

The Dow Jones Industrial Average (DJI) fell less than 0.1% to close at 41,989.96. At intraday high, the blue-chip index was up nearly 139 points. On the other hand, at intraday low, the index was down 481.86 points. Notably, 21 components of the 30-stock index ended in positive territory and 9 finished in negative zone.

The major loser of the index was Johnson & Johnson JNJ. The stock price of the pharmaceutical giant tumbled 7.6%. Johnson & Johnson currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The tech-heavy Nasdaq Composite finished at 17,449.89, gaining 0.9% due to strong performance by technology bigwigs.In intraday low, the tech-laden index was down nearly 150 points and at intraday high the index was up more than 207 points. Nasdaq Composite is currently in correction territory.

The S&P 500 rose 0.4% to finish at 5,633.07. In intraday high, Wall Street’s most observed benchmark was up 38.72 points and at intraday low, the index was down 53.33 points. Nine out of 11 broad sectors of the broad-market index ended in positive territory and two in negative zone. The Consumer Discretionary Select Sector SPDR (XLY) increased 1% while the Health Care Select Sector SPDR decreased 1.8%.  

The fear-gauge CBOE Volatility Index (VIX) was down 2.3% to 21.77. A total of 15.09 billion shares were traded on Tuesday, lower than the last 20-session average of 15.83 billion.

Trump’s Reciprocal Tariffs in Focus

On Apr 2, President Donald Trump is set to announce reciprocal tariffs on all imported goods in the United States across the world. Trump called Apr 2 as America’s “liberation day.” White House press secretary Karoline Leavitt told reporters“My understanding is that the tariff announcement will come tomorrow. They will be effective immediately.”

Market participants are nervously waiting for the announcement and will perform a microscopic analysis regarding the impact of these tariffs on the United States as well as global trade and economic growth. Special attention will be about the impact on inflation rates.

Economic Data

The Job Openings and Labor Turnover Survey (JOLTS) reported by the Bureau of Labor Statistics revealed the job openings at the end of February came in at 7.57 million, compared with upwardly revised data of 7.76 million in January.

February’s reading marked the lowest level since September 2024 and stayed near early 2021 level. Total job hires in February came in at 5.4 million, marginally above 5.39 million in January. The hiring rate stayed flat at 3.4%. Job quits rate fell to 2% in February from 2.1% in January.

The institute of Supply Management (ISM) reported that manufacturing PMI (purchasing managers’ index) for March contracted to 49% from 50.3% in February. The consensus estimate was 49.5%. Any reading below 50% indicates contraction in manufacturing activities.

The new orders index fell to 45.2% in March from 48.6% in February. The employment index was down to 44.7% in March from 47.6% in February. The price index increased to 69.4% in March from 62.4% in February.

Construction spending increased 0.7% in March, beating the consensus estimate of 0.3%. Construction spending contracted 0.2% in January. In February, private construction rose 0.9% month-over-month, while public construction rose 0.2%.

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