S&P 500 Rises as Tech Surges Ahead of Trump’s Tariff Announcement

U.S. stocks closed mixed Tuesday as tech stocks rallied ahead of President Donald Trump’s upcoming tariff announcement. The S&P 500 climbed 0.4%, the NASDAQ rose 0.9%, while the Dow Jones Industrial Average dipped 11 points.

Despite Tuesday’s gains, major indexes posted losses in Q1 2025. The S&P 500 dropped nearly 5%, the NASDAQ plunged over 10%, and the Dow fell about 2%.

President Trump is expected to unveil sweeping reciprocal tariffs at 3:00 p.m. ET on April 2, effective immediately. These may include a flat 20% tariff, a tiered system, or country-specific rates. The move, dubbed “Liberation Day,” includes a 25% tariff on auto imports starting April 3 and ends duty-free exemptions for small packages from China. Goldman Sachs raised its U.S. recession risk to 35%, citing the potential economic hit from tariffs and a projected 15% average tariff rate.

Economic data reinforced investor caution. February’s JOLTS report showed job openings fell to 7.568 million, slightly below expectations and down nearly 900,000 year-over-year. Meanwhile, the ISM Manufacturing Index declined to 49.0 in March, signaling contraction and hitting a four-month low.

Tech stocks led the market, with Tesla gaining 3% ahead of its Q1 delivery update. Analysts expect weak results due to cooling demand, rising competition, and CEO Elon Musk’s political ties to Trump. Brand issues and delays in new model rollouts also weighed on sentiment.

In earnings news, PVH surged 18% after beating Q4 estimates, while Progress Software jumped over 12% on strong results and guidance. Johnson & Johnson dropped 7.6% after a judge blocked its $10B talc settlement plan. Newly public Newsmax soared 183% on Tuesday, continuing its meme stock momentum after a 735% debut.