Market Recap: Stocks Steady, Oil Declines, and Tariff Concerns Weigh on Sentiment

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Index Update

The S&P 500 and Nasdaq rose 0.01% and 0.26%, ending a four-day losing streak, while the Dow fell 0.43%, wiping out the previous day’s gains. Markets reacted to President Trump’s announcement of a 25% tariff on European autos and upcoming tariffs on Mexico and Canada set for April 2.

Market Movers

On Wednesday, the top gainers were Inogen, Inc (+24.79%), followed by     ACM Research, Inc. (+20.97%). On the contrary, Flywire Corporation (-48.19%) and Grocery Outlet Holding Corp. (-30.05%) declined the most the same day.

Commodities Update

WTI crude oil futures traded below $69 per barrel, near a yearly low, amid rising supply concerns and weak demand. Hopes for a Russia-Ukraine peace deal pressured prices, as eased sanctions could increase oil supply. The US and Ukraine reached a draft minerals agreement, supporting President Trump’s push to end the war. Additional headwinds came from Trump’s tariffs, which may slow economic growth, and his plan to revoke Chevron’s Venezuela oil license. Iraq also announced a deal to resume crude exports from Kurdistan. Oil is set for its biggest monthly decline since September.

Macro Update

The US 10-year Treasury yield steadied at 4.28% after six days of declines as investors awaited key economic data, including Q4 GDP and the PCE price index. Markets have priced in two Fed rate cuts this year amid signs of economic weakness. Meanwhile, traders assessed President Trump’s tariff plans, including 25% tariffs on European autos and delayed tariffs on Mexico and Canada to April 2, with some cautioning that deeper tariff risks may be underpriced.

Futures Update

US stock futures were steady as investors assessed Nvidia’s earnings. Despite beating sales and earnings estimates with a 78% revenue surge driven by AI demand, Nvidia's stock remained flat in after-hours trading. Meanwhile, Salesforce dropped over 5% after weak quarterly results and guidance.

Stocks showed a strong move to the upside early in the session on Wednesday but gave back ground over the course of the trading day. The major averages pulled back well off their highs of the session, although the Nasdaq and the S&P 500 managed to close in positive territory. After surging by as much as 1.3 percent, the tech-heavy Nasdaq ended the day up 48.88 points or 0.3 percent to 19,075.26. The S&P 500 eked out a more modest gain, inching up 0.81 points or less than a tenth of a percent to 5,956.07. From a technical standpoint, the S&P 500 is currently positioned within a rising channel, indicating the potential for a continued upward trend in the near term. The 14-period RSI is sitting around the midpoint, reflecting a neutral stance at these levels. Important technical levels to monitor include 6,100, which may act as resistance, and 5,900, which could serve as support, to help assess the market's next direction.