S&P 500 Rises as PVH, Tesla Lead Gains; Healthcare and Banks Under Pressure

S&P 500 Rebounds in Choppy Trade as Tariff Clarity Sought

U.S. equities clawed back gains Tuesday after a shaky start, with the S&P 500 rising 0.3% and the Nasdaq Composite gaining 0.7%. The Dow hovered near flat. Markets remain uneasy as investors brace for the White House’s upcoming announcement on reciprocal tariffs, expected Wednesday. Uncertainty around the breadth and immediacy of the policy has fueled intraday swings, overshadowing weaker economic data.

How did macro data add to market unease?

Economic signals disappointed. The ISM manufacturing index fell into contraction territory, missing expectations and reinforcing fears that tariff threats are already pressuring demand. Separately, February job openings came in slightly below forecasts, further tempering labor market optimism. Traders are weighing these signs of economic fatigue as they prepare for potential tariff escalation, which could dent corporate margins and consumer confidence.

Which sectors and stocks moved the needle?

Consumer discretionary led the advance, up 1.5%, boosted by strength in names like PVH (+17%) after a strong earnings beat, and Shake Shack (+2.8%) following an analyst upgrade citing resilient sales trends. Tech added 0.4%, helped by Roblox (+4%), which unveiled a monetization deal with Google to expand in-game advertising.

Healthcare dragged on the broader market, falling 1%, with Johnson & Johnson slipping 5% after a judge blocked its $10 billion talc settlement. Financials also edged lower as concerns about economic softness and policy uncertainty weighed on rate-sensitive sectors.

What drove notable single-stock action?

Progress Softwarerallied 9% after beating earnings estimates and raising guidance, while Bloom Energy climbed 6% on a green energy partnership with Conagra. Tesla rose 5% ahead of its Q1 delivery report, and Xpeng tacked on 2% following a massive year-over-year delivery jump.

Meanwhile, airline stocks came under pressure after Jefferies downgraded American, Delta, and Southwest, citing valuation concerns and cost pressures.

Newsmax surged 75%, extending its explosive debut rally. First Watch jumped 8% after an analyst cited improving same-store sales trends. On Holding fell 4% on leadership changes, as investors questioned strategic consistency under a new solo CEO structure.

What’s the road ahead for traders?

Markets remain on edge heading into Wednesday’s tariff announcement. If the measures are narrower than feared, a short-term relief rally is possible.

However, if broad-based levies are confirmed, equities could face renewed pressure, particularly in import-heavy sectors. With economic data softening, traders will be closely watching upcoming labor and inflation reports for signs of deeper weakness.

Until more clarity emerges on policy and growth, volatility is likely to persist.

More Information in our Economic Calendar.