Stock Market Update

[BRIEFING.COM] The S&P 500 (+0.6%) and Dow Jones Industrial Average (+1.0%) closed at or near highs after rebounding off early session lows. The Nasdaq Composite (-0.1%) also staged a rebound after trading down as much as 2.7% at its low, but still settled slightly below Friday's close.

The initial decline in equities reflected some hesitation about Wednesday's implementation of reciprocal tariffs. Headlines over the weekend impacted investors' sentiment after reports that the Trump administration is considering broader tariffs on April 2, including a 20% universal tariff on all imports from all countries.

The news also sparked some safe-haven buying in Treasuries, which dissipated as selling eased in equities. The 10-yr yield settled one basis point lower at 4.25% after hitting 4.19% earlier. The 2-yr yield settled unchanged at 3.91% after hitting 3.85%.

Many stocks participated in the recovery efforts, leading the equal weighted S&P 500 to close 0.8% higher. Mega cap shares were largely left out of the improvement. NVIDIA (NVDA 108.38, -1.29, -1.2%), Microsoft (MSFT 375.39, -3.41, -0.9%), Amazon.com (AMZN 190.26, -2.46, -1.3%), and Tesla (TSLA 259.16, -4.39, -1.7%) were influential losers from the space.

The price action in AMZN and TSLA pinned the consumer discretionary sector in negative territory, down 0.2% from Friday. The remaining ten sectors registered gains led by consumer staples (+1.6%) and financials (+1.3%). 

• Dow Jones Industrial Average: -1.3% YTD
• S&P 500: -4.6% YTD
• S&P Midcap 400: -6.5% YTD
• Russell 2000: -9.8% YTD
• Nasdaq Composite: -10.4% YTD

Reviewing today's economic data:

• March Chicago PMI 47.6 vs. 45.3 Briefing.com consensus; prior revised to 45.0 from 45.5

Looking ahead to Tuesday, market participants receive the following data:

• 9:45 ET: Final March S&P Global U.S. Manufacturing PMI (prior 49.8)
• 10:00 ET: February Construction Spending (Briefing.com consensus 0.4%; prior -0.2%), February job openings (prior 7.740 mln), and March ISM Manufacturing Index (Briefing.com consensus 49.8%; prior 50.3%)