Nasdaq Index: Tech Stocks Drag US Indices Ahead of Meta and Microsoft Earnings

Nasdaq Dips at Mid-Session as Trade Deal Uncertainty Limits Momentum

Stocks traded mixed mid-session Tuesday, with the S&P 500 hovering near the flatline, up just 2 points to 5,117, as investors awaited clarity on global trade talks and monitored a heavy slate of corporate earnings. The Dow Jones Industrial Average rose 194 points, or 0.5%, to 38,380, while the Nasdaq Composite dipped 0.3% to 15,857.

Are Trade Concerns Reasserting Control Over Markets?

Caution crept in after Treasury Secretary Scott Bessent failed to provide substantive updates on negotiations with China. Although he highlighted progress with Japan and India, he sidestepped confirming any active talks with Beijing. The lack of visibility on U.S.-China trade relations, coupled with a warning that tariffs could cost China 10 million jobs, reinforced traders’ defensive posture.

Tensions spiked further after the White House condemned Amazon’s reported plan to display tariff surcharges on low-cost goods. Officials labeled the move “hostile,” pressuring shares of Amazon, which dropped 3.2% by midday. Broader concerns about retaliatory measures and their corporate impact weighed on megacaps, contributing to the Nasdaq’s decline.

Which Sectors Are Showing Resilience?

Sector performance was mixed. Consumer discretionary stocks lagged, down 0.58%, dragged by Amazon and GM. The automaker slid 1.9% after pulling full-year guidance and pausing buybacks due to tariff concerns. Industrials and financials posted modest gains, with Honeywell rising 4.2% on better-than-expected earnings. Materials also gained 0.57%, helped by Sherwin-Williams’ 5.2% post-earnings rally.

Defensive plays outperformed slightly, with utilities, staples, and health care up between 0.2% and 0.42%. Energy slipped 0.36% despite relatively stable oil prices, as concerns lingered over global demand in a potentially slower economic backdrop.

Is the Data Supportive of a Stronger Market?

Economic readings added to the uncertainty. March job openings fell short of expectations at 7.19 million versus the 7.48 million forecast, while consumer confidence came in below estimates at 86. This week’s key release will be Friday’s nonfarm payrolls report, a potential catalyst if it confirms labor market resilience or signals deterioration.

What’s the Market Outlook from Here?

With roughly one-third of S&P 500 firms reporting earnings this week, including Big Tech names like Meta, Microsoft, Amazon, and Apple, traders remain focused on corporate guidance for signs of tariff impact.

However, without clearer progress on trade deals—especially with China—upside momentum may remain capped. HSBC’s recent S&P 500 target cut to 5,600 reflects growing concern that policy risks and economic softness could temper further gains.

More Information in our Economic Calendar.