Nasdaq and S&P500: Apple and Alphabet Drop While Tesla Gains on EV Momentum

Stocks Retreat to Open Q2 as Tariff Uncertainty Weighs on Sentiment

U.S. equities slipped Tuesday, pressured by investor caution as markets await clearer signals on President Donald Trump’s proposed tariff policy. The Dow Jones Industrial Average lost 238 points, or 0.6%, while the S&P 500 declined 0.4% and the Nasdaq Composite fell 0.3%, marking a subdued start to the second quarter following a weak Q1.

Are tariffs the main driver behind market hesitation?

Concerns grew following a Washington Post report that the administration may impose broad-based tariffs—potentially around 20%—on most imports. While the White House is expected to announce details Wednesday, market participants had hoped for a more targeted strategy. The uncertainty has created significant downside pressure, with the S&P 500 having hit a six-month low on Monday before rebounding. For Q1, the index lost 4.6%, the Nasdaq dropped 10%, and the Dow fell 1.3%, with trade policy volatility a key contributor.

Which stocks were most affected?

Alphabet and Apple each fell more than 1%, adding pressure to the tech-heavy Nasdaq. The selling came as investors shed high-valuation names sensitive to macro headlines.

Johnson & Johnson dropped 4% after a bankruptcy judge rejected its proposed $10 billion talc-related settlement. The court ruled the plan lacked sufficient support from alleged victims, sparking renewed legal uncertainty.

Tesla gained over 2%, extending its recovery after recent pressure. Fellow EV maker Xpeng rose 3% after announcing March deliveries of 33,205 vehicles, a more than 260% increase from the prior year.

What moved on earnings and ratings?

PVH Corp surged 16% after topping Q4 earnings and revenue expectations. The apparel company behind Calvin Klein and Tommy Hilfiger reported $3.27 per share on $2.37 billion in sales, beating LSEG estimates.

Airlines underperformed following downgrades by Jefferies. American Airlines and Delta each dropped nearly 2%, while Southwest sank over 3% after being cut to underperform.

Shake Shack gained 3% after Loop Capital upgraded the stock to buy, pointing to a strong record of surpassing sales expectations. First Watch Restaurant Group also climbed 3% after TD Cowen upgraded its rating, citing improved marketing effectiveness.

Newsmax soared over 22% in premarket trade, extending gains after a 700% surge during its debut session on the NYSE. The conservative media firm had opened at $14 and ended Monday at $83.51.

What should traders watch next?

Attention now turns to March’s ISM manufacturing index and February’s job openings report. Both indicators will help assess broader economic strength and labor market conditions.

With tariff policy announcements expected shortly, traders remain cautious, pricing in potential downside unless a more moderate approach materializes.

The short-term bias stays defensive unless clarity on trade reduces risk premiums.

More Information in our Economic Calendar.