US stocks end higher as traders focus on tariffs, data

US stocks end higher as traders focus on tariffs, data

  • 26.03.2025 02:02
  • economictimes.indiatimes.com
  • Keywords: AI, Startup

US stocks closed higher Tuesday, driven by gains in Apple and Tesla despite Nvidia's dip. Tariffs and trade policies remained key focuses for investors amid mixed market performance.

Apple ServicesAAPLsentiment_satisfiedNVDAsentiment_dissatisfied
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Estimated market influence

Apple

Apple

Positivesentiment_satisfied
Analyst rating: Buy

Apple's stock rose 1.4%, contributing to the positive market movement.

Nvidia

Nvidia

Negativesentiment_dissatisfied
Analyst rating: Strong buy

Nvidia's shares fell by 0.6%.

Context

Analysis of US Stock Market Performance - March 26, 2025

Key Market Performance

  • S&P 500: Ended at 5,776.65, up 0.16%
  • Nasdaq Composite: Closed at 18,271.86, up 0.46%
  • Dow Jones Industrial Average: Rose slightly to 42,587.50, up 0.01%

Sectoral Highlights

  • Communication Services: Led gains with a 1.43% increase
  • Consumer Discretionary: Grew by 0.98%, contributing to market momentum

Stock Performance

  • Apple Inc.: Rose 1.4%, driving the Nasdaq higher
  • Nvidia Corporation: Dipped 0.6%, weighing on tech sentiment
  • Rivian Automotive: Surged 3.45%, extending a 12% rally from the previous day

Consumer Confidence

  • Consumer confidence fell to 92.9 in March, its lowest since February 2021, signaling economic uncertainty.

Tariff Concerns and Market Sentiment

  • Investors closely monitored potential tariffs on automobiles, with concerns about inflation and corporate profit impacts weighing on sentiment.
  • The S&P 500 is down 2% year-to-date in 2025, heading for its first quarterly loss since June 2023.

Economic Policy Implications

  • Moody's Warning: U.S. fiscal strength is declining due to widening budget deficits and rising debt affordability concerns.
  • Fed Policy Uncertainty: Federal Reserve Governor Adriana Kugler noted that interest rate policy remains restrictive, but progress on inflation has slowed.

Market Dynamics

  • Volume: Light trading with 13.0 billion shares traded, compared to a 20-day average of 16.4 billion shares.
  • New Highs/Lows: S&P 500 saw 11 new highs and 4 new lows, while Nasdaq recorded 42 new highs and 160 new lows.

Competitive Landscape

  • Rivian's European market share continued to shrink despite overall EV sales growth in the continent.
  • Zscaler gained 3.3% after BTIG upgraded its rating to "buy" from "neutral."

Strategic Considerations

  • Investors are seeking clarity on tariff policies, with expectations of a flexible approach from the Trump administration next week.
  • The upcoming Personal Consumption Expenditures (PCE) price index is seen as a critical inflation gauge for market sentiment.

Long-Term Effects

  • Tariff-related uncertainties and inflation risks could impact corporate profitability and consumer spending in the near term.
  • The Fed's restrictive monetary policy may slow economic growth, affecting market performance in the medium term.