NEW YORK (AP) — Wall Street followed up one of its best days of the last year with a quiet performance. The S&P 500 rose 0.2% Tuesday after jumping 1.8% Monday on hopes that President Donald Trump’s tariffs may not be as sweeping as feared. The Dow Jones Industrial Average edged barely higher, and the Nasdaq composite added 0.5%. Trump Media & Technology Group jumped to one of the market’s bigger gains after announcing a deal to offer “America First” investment funds. But signs are piling up that Trump’s tariffs are making U.S. consumers more worried about the economy’s future.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
NEW YORK (AP) — Wall Street is quieter on Tuesday after roaring the day before on hopes that President Donald Trump's tariffs may not be as sweeping as earlier feared.
The S&P 500 was 0.1% lower in late trading after jumping 1.8% Monday to one of its best days of the last year. The Dow Jones Industrial Average was down 92 points, or 0.2%, with a little less than an hour remaining in trading, and the Nasdaq composite was 0.2% higher.
U.S. stocks have recovered a chunk of their losses since falling 10% below their all-time high earlier this month, for their first "correction" since 2023. The S&P 500 is now down roughly 6% from its record, and that drop has left the market looking less expensive than before, which had been a major criticism following its euphoric rise in earlier years.
But strategists along Wall Street warn that more sharp swings are still likely on the way with an April 2 deadline looming. That's what Trump has called "Liberation Day," when he will begin a global set of tariffs on trading partners that will roughly equal what he sees as the burden each puts on the United States. Monday's spurt for Wall Street came on hopes that Trump's "reciprocal" tariffs may be more targeted than had been feared.
“We think markets are underplaying the risk of a tariff shock in early April,” according to Ajay Rajadhyaksha, global head of research at Barclays. He points not only to traders' expectations for upcoming volatility in the stock market but also to the values of the Mexican peso and Canadian dollar, which haven't weakened substantially from the last postponement of tariffs.
Even if Trump's tariffs do end up being less painful for the global economy than feared, all the dizzying talk about them has already soured confidence among U.S. households and businesses. The fear is that could lead them to cut back on their spending and freeze the economy.
A report on Tuesday showed that pessimism among U.S. households is only worsening. The Conference Board's measure of consumer confidence fell by more than expected, mostly because of a tumble for expectations about upcoming conditions in the short term. That dropped to its lowest level in 12 years and is sitting "well below the threshold of 80 that usually signals a recession ahead."
Like other recent surveys, the data showed U.S. households are much more concerned about where the economy is heading than where it is currently. So far, actual economic activity and the job market seem to be holding up despite the worsening moods of U.S. companies and consumers.
On Wall Street, Trump Media & Technology Group climbed 6.6% after the company behind the president's Truth Social platform said it had reached an agreement with Crypto.com to offer a suite of "America-First" investment funds.
The exchange-traded funds will hold bitcoin and other digital assets, along with what TMTG called “securities with a Made in America focus spanning diverse industries such as energy.” Crypto.com will support the backend technology, provide custody, and supply the cryptocurrencies for the ETFs, which will operate under TMTG's Truth.Fi brand.
Homebuilder KB Home dropped 4.4% after reporting weaker profit and revenue for the latest quarter than analysts expected. Already mired in a slump, homebuilders may face potentially rising costs due to tariffs, which they will have to pass on to buyers. A report on Tuesday morning said U.S. sales of new homes last month were slightly weaker than economists expected.
Tesla rose 1.5% after drifting between modest gains and losses following more grim sales figures from Europe. It nevertheless remains down 30% for 2025 so far.
European sales of Tesla's electric vehicles dropped by nearly half during the first two months of the year, compared with a year earlier, even as the overall market for battery-powered cars grew, according to the European Automobile Manufacturers Association.
In addition to an aging model line, drops in sales may be due in part to CEO Elon Elon Musk's endorsement of Germany's far-right party in last month's national election, his embrace of fringe political movements, and a gesture during a Trump event in January that many saw as a Nazi salute. Tesla is also facing increasing competition from Chinese carmakers such as BYD.
In stock markets abroad, indexes rose in much of Europe following a mixed finish in Asia.
In the bond market, Treasury yields eased. The yield on the 10-year Treasury fell to 4.30% from 4.34% late Monday.
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AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
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