The stock market experienced a volatile start to April and Q2, with major equity indices fluctuating as investors anticipate upcoming tariff announcements and process recent economic data.

The market initially declined, reacting to the release of the ISM Manufacturing PMI, which came in at 49.0% (below the expected 49.8% and down from the previous 50.3%). This report highlighted a contraction in March's manufacturing activity, with prices rising sharply for the second consecutive month.

This data added to growing concerns about economic growth, potentially affecting earnings prospects, amid tariff-related uncertainties.

A turnaround in mega-cap stocks helped lift the market. Notable gains were seen in Apple (AAPL, Financial) at $223.19 (+0.5%), Microsoft (MSFT, Financial) at $382.19 (+1.8%), and NVIDIA (NVDA) at $110.15 (+1.6%). These companies represent nearly 20% of the S&P 500's market cap.

Eight out of 11 S&P 500 sectors posted gains, led by consumer discretionary (+1.1%), communication services (+1.0%), and technology (+1.0%). However, the health care (-1.8%) and financial (-0.2%) sectors ended in the red.

Treasuries closed with gains across the curve. The 10-year yield decreased by nine basis points to 4.16%, while the 2-year yield fell by five basis points to 3.86%.

• Dow Jones Industrial Average: -1.3% YTD
• S&P 500: -4.2% YTD
• S&P Midcap 400: -5.9% YTD
• Russell 2000: -9.8% YTD
• Nasdaq Composite: -9.6% YTD

Today's economic data review:

• March S&P Global US Manufacturing PMI - Final: 50.2; Prior: 49.8
• March ISM Manufacturing Index: 49.0% (expected 49.8%); Prior: 50.3%
  • Key takeaway: A concerning mix of slowing activity, rising prices, and weakening employment in manufacturing, sparking stagflation talks.
• February JOLTS - Job Openings: 7.568 million; Prior revised to 7.762 million from 7.740 million
• February Construction Spending: 0.7% (expected 0.4%); Prior revised to -0.5% from -0.2%
  • Key takeaway: Weakness in private residential spending focused on multifamily construction.

Upcoming data for Wednesday includes:

Today's News

Lucid Group (LCID, Financial) experienced a significant rally, rising 7.5% in late morning trading. The electric vehicle maker has been benefiting from an influx of orders from former Tesla (TSLA, Financial) owners, with interim CEO Marc Winteroff noting that 50% of recent orders are from ex-Tesla drivers. Analysts believe Lucid's full assembly operations in Arizona give it a competitive edge in the auto sector.

Wells Fargo has reiterated its negative outlook on Tesla (TSLA, Financial), predicting a decline in delivery growth and potential margin pressure from price cuts. The company faces challenges in the US and EU markets, and increased competition in China. Concerns also loom over Tesla's autonomous vehicle technology and the potential reduction of the $7.5K IRA EV buyer tax credit.

Johnson & Johnson (JNJ, Financial) remains confident in its financial outlook despite a Texas court ruling against its bankruptcy plan for settling talc cases. The company plans to litigate pending cases and is pursuing motions to exclude plaintiffs' experts as part of its strategy to handle ongoing litigation.

CoreWeave (CRWV) shares surged over 40% on Tuesday, marking a recovery from its initial public offering's lukewarm response. The Nvidia-backed company had downsized its offering amid market volatility, raising $1.5 billion. Despite reporting a net loss, CoreWeave's significant revenue growth and ties with Microsoft (MSFT, Financial) have attracted investor attention.

PVH Corp (PVH, Financial) shares jumped following the company's positive outlook for 2025, despite challenges in consumer demand and macroeconomic pressures. The company has taken proactive measures to navigate the uncertain environment and was recently added to China's Ministry of Finance's unreliable entity list.

Visa (V, Financial) has reportedly offered Apple (AAPL, Financial) around $100 million to switch its credit card network from Mastercard (MA, Financial). The competition to replace Goldman Sachs (GS) as the issuer of the Apple Card is heating up, with American Express (AXP, Financial) also in the running.

Deutsche Bank downgraded Altria (MO, Financial) to a Hold rating, citing limited upside potential and challenges related to NJOY litigation. Altria faces significant revenue declines due to the inability to sell NJOY products in the U.S. following a patent infringement ruling.

Major drugmakers, including Merck (MRK, Financial), Pfizer (PFE, Financial), and Johnson & Johnson (JNJ, Financial), saw declines as the market braces for President Trump's forthcoming tariff announcement. The potential impact on the pharmaceutical industry has contributed to the sector's volatility.

Palantir (PLTR) shares have been volatile amid concerns over tech valuations and reduced government spending. The company's role in AI development has fueled its stock performance, but recent defense budget cuts could impact its future contracts.

Hims & Hers Health (HIMS) saw its shares rise after announcing the addition of Eli Lilly's (LLY) weight loss therapy to its platform. The move is part of HIMS' strategy to offer comprehensive care solutions, boosting its position in the telehealth market.

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