Markets in the US were mixed during a volatile trading session on Tuesday to begin the second quarter of the year, as continuing uncertainty over President Donald Trump’s tariffs continue to weigh on investor sentiment.
Mr Trump was expected to unveil a slate of tariffs on Wednesday – which he has called “Liberation Day” – that he has said will reduce US reliance on foreign goods. The President on Monday said he had made a decision on the latest plans, but did not reveal details.
The Dow Jones Industrial Average was relatively flat during mid-morning trading after paring losses of roughly 300 points earlier in the session. The S&P 500 and Nasdaq, which are coming off their worst quarterly losses since 2022, both rallied into green territory after beginning the session lower.
Meanwhile, the yield on the 10-year Treasury fell 11 basis points to 4.135 per cent.
“The ebbs and flows of safe-haven support have dominated the Treasury market price action recently, and we expect that will continue over the near term as traders await tomorrow’s tariff details and any global response,” Oxford Economics’ lead US analyst John Canavan wrote in a note.
Investors received another piece of unwelcome economic data on Tuesday, as manufacturing activity contracted again in March as companies grapple with uncertainty over tariffs.
“A front-running of tariffs and shift to minimise import exposure is driving up prices, while persistent uncertainty is crimping underlying demand and leaves manufacturers longing for clarity,” Wells Fargo analysts wrote to clients.
A separate report from the Bureau of Labour Statistics showed that job openings slid in February, showing that the labour market is gradually cooling. The Labour Department was due to release March’s employment figures on Friday.
Markets entered the week facing a heightened degree of uncertainty over Mr Trump’s self-imposed April 2 deadline on his tariff agenda. His much-delayed approach towards slapping levies on US trading partners has sent market sentiment plummeting, raised recession forecasts from the private sector and has muddied the outlook for the world’s largest economy.
