Stock Market Update

[BRIEFING.COM] It was another volatile session in the stock market. There was a strong rally right out of the gate, resulting in the S&P 500 and Nasdaq Composite trading up as much as 4.1% and 4.6%, respectively. The Dow Jones Industrial Average was more than 1,400 points higher than yesterday at its best level.

However, the major indices finished in negative territory and the S&P 500 (-1.6%) closed below 5,000. Catalysts being cited as reasons for the deterioration include a confirmation from the White House that 104% tariffs on imports from China go into effect at midnight tonight, and weak demand for today's $58 billion 3-yr note auction. 

Stocks were already in a slow decline before those catalysts were in play, which suggests some selling into early strength as a driving factor for the turnaround. 

Increased selling in mega caps and chipmakers was another driving factor. Apple (AAPL 172.42, -9.04, -5.0%), which had been up as much as 4.9% at its session high, and NVIDIA (NVDA 96.30, -1.34, -1.4%), which had surged as much as 8.4%, were influential losers from the space. 

Every S&P 500 sector was higher in the early rally, and every sector rolled over. The materials (-3.0%) and consumer discretionary (-2.5%) sectors were the worst performers, while the financial sector saw the slimmest loss, down 0.4%.

The Treasury market also exhibited a sharp turnaround. The 10-yr yield, which settled 11 basis points higher at 4.26%, moved as low as 4.17% today.

Today's economic calendar was limited to the NFIB Small Business Optimism Survey, which dropped to 97.4 in March from 100.7. 

• Dow Jones Industrial Average: -11.5% YTD
• S&P 500: -15.3% YTD
• S&P Midcap 400: -17.9% YTD
• Nasdaq Composite: -20.9% YTD
• Russell 2000: -21.1% YTD