Wall Street’s losing streak ends as S&P500 edges up; uncertainty over tariffs lingers

Wall Street ended Friday with mixed results. The S&P 500 managed to end a losing streak of four weeks despite concerns about tariffs, uncertainty in the economy, and weakness in the tech sector.

Investors digested Donald Trump’s recent remarks about reciprocal tariffs, and they awaited what the Federal Reserve would do next.

S&P closed at 5,667.56 with a 0.08% gain, its first weekly increase in more than a month.

The Nasdaq Composite improved by 0.52%, reaching 17,784.05. Meanwhile, the Dow Jones Industrial Average gained 32.03 or 0.08% to 41,985.35.

The market participants experienced a volatile session driven by the “quadruple Witching” quarterly event wherein stock options, index futures and contracts for single stocks futures expired.

Goldman Sachs estimates that more than $4.7 trillion in options were set to expire. This will add to the volatility of this session.

Wall Street faces uncertainty over tariffs

The stock market recovered late in the day after Donald Trump indicated some “flexibility”. However, he reiterated all trade partners who impose duties on US products will face reciprocal taxes starting on April 2.

Michael Green, Simplify Asset Management’s chief strategist, said that the uncertainty in business caused by trade policies has begun to affect capital expenditure and hiring decisions. This, in turn, is impacting investor sentiment.

Green stated that companies are becoming more reluctant to commit large sums of money. The markets are reflecting this uncertainty as we approach the deadline of April 2.

Stocks in the tech sector continue to fall

This week the technology sector, which was down by 0.8% this past weekend, marked its fifth successive weekly drop, a trend not seen since the month of May 2022.

Semiconductor stocks that were market leaders by 2023 saw significant declines:

• Nvidia’s (NVDA), shares fell when chip demand cooled.
• Micron and Applied Materials have declined due to supply chain issues.
• Accenture (ACN), too, saw a downward trend in the sector.

Weak earnings reports from major bellwethers have heightened concerns about a slowdown in consumer spending and industry activity.

• FedEx’s (FDX), which cited the US Industrial Economy as a reason for its weakening earnings forecast, fell 6.5%.
• Nike (NKE), a major sportswear brand, dropped more than 5% in value after an announcement that tariffs and consumer confidence could affect sales.

Economic stress is reflected in stocks hitting their 52-week lows

On Friday, a number of consumer stocks and transport companies hit 52-week lows. This reflects concerns about economic growth.

• Nike (NKE), lowest level since March 2020
• TGT: lowest level since April 2020
• The Host Hotel Tax (HST), lowest level since February 2020
• Ross Stores ROST: lowest level since Nov 2023

The downturn in the transport sector was just as severe:

• FedEx (FDX), a major international courier, has reached levels not seen since June 2023
• JB Hunt’s (JBHT), shares fell as low as February 2021
• Old Dominion Freight Line also fell to a yearly minimum

Tariff anxiety will cap stock gains

Barclays analysts warn that the upside potential of the market may be limited until tariffs are clarified.

“Stocks are slightly higher from their oversold levels but the tariff uncertainty is still a big overhang,” said Emmanuel Cau of Barclays, who heads up European equity strategy.

Investors are watching closely for policy changes that may determine where the market goes next. The April 2 deadline is fast approaching.

The Federal Reserve’s position on interest rates, as well as corporate earnings will continue to be critical in shaping the sentiment.

The post Wall Street’s losing streak ends as S&P500 edges up; Tariff uncertainty persists could be updated as new developments unfold.

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