Losses for the Dow Jones Industrial Average and other main stock indexes deepened on Wednesday as investors prepared for President Trump’s imminent “Liberation Day” tariffs. Major players like Nvidia and Tesla faced significant declines, with Tesla reporting first-quarter deliveries that fell short of expectations.
After the markets opened, the Dow dropped 0.3%, the S&P 500 declined 0.4%, and the tech-heavy Nasdaq composite was down by 0.3%. This downward momentum reflects a growing sense of uncertainty among investors about potential economic implications as tariffs loom on the horizon.
The 10-year Treasury yield nudged down to 4.1%, and crude oil prices softened, with West Texas Intermediate futures hovering around $70.95 per barrel. Exchange-traded funds also mirrored this downward trend, with the Invesco QQQ Trust (QQQ) down 0.3% and the SPDR S&P 500 ETF (SPY) down 0.4%.
Tesla saw its stock plummet by as much as 6% in early trading, before recovering slightly to a 3% decrease. The company announced first-quarter vehicle deliveries of 336,681, marking a 13% decline from the previous year and its lowest quarterly performance since mid-2022. Analysts had forecast a modest increase to about 407,900 deliveries, but those expectations had been adjusted downward multiple times. Some analysts estimated Tesla’s actual deliveries to be as low as 315,000, indicating significant challenges in the U.S. and European markets, while Chinese sales remain relatively stable. Tesla’s stock, currently about 45% below its all-time high, continues to struggle below its 200-day moving average.
Nvidia’s shares, while initially down 1%, attempted to rebound from recent lows, snapping a five-day losing streak the day before with a 1.6% uptick. This reflects ongoing volatility in the technology sector, especially among companies investing heavily in artificial intelligence.
On the economic front, President Trump is slated to reveal details about the new “reciprocal” tariffs at 4 p.m. ET. The scope and timing of these tariffs are still unclear, but the administration is rumored to be considering a reduction in rates on certain tariffs, adding another layer of ambiguity to the situation.
In other economic indicators, ADP’s employment report showed a rise of 155,000 in private payrolls for March, exceeding the anticipated increase of 120,000 and signaling stronger-than-expected job growth ahead of the forthcoming Labor Department report.
Focusing more broadly on the stock market, blue-chip stocks from the Dow experienced some losses, while the S&P 500 and Nasdaq posted gains on the previous trading day. Notable stocks to watch include Heico, Ollie’s Bargain Outlet, Life Time, and Uber Technologies. Each of these companies is in or near key buy zones, with breakout points that might offer promising investment opportunities despite the current market turbulence.
Travelers, a Dow component, is just below a buy point, while Ollie’s Bargain Outlet is challenging resistances in an attempt to break out. Life Time and Heico also present potential entry points for discerning investors.
Amid the chaos, large tech stocks like Amazon, Apple, and Microsoft remain under pressure, reflecting a broader trend in the market where many stocks are grappling with profitability and growth concerns.
As the market navigates through these uncertainties, investors should remain vigilant and adaptive, focusing on fundamental analysis and market trends to identify opportunities, while also keeping an eye on macroeconomic factors that could shape future trading conditions.
