Tuesday saw the S&P 500 drop for the fourth straight day as traders considered worries about global trade and economic growth.
The broad market index closed at 5,955.25, down 0.47%. The Nasdaq Composite ended the day at 19,026.39, down 1.35%. This week, Nvidia led the tech-heavy index’s 2.8% decline, sending the Nasdaq into a losing position for the year. The Dow Jones Average was an exception, which closed at 43,621.16 after rising 159.95 points, or 0.37%.
The market fell after the release of the Conference Board’s most recent consumer confidence poll, which was far worse than analysts had predicted. Poor manufacturing and retail sales numbers were among the disappointing data announcements from the prior week that followed this one. Walmart’s cautiousness for the future was one factor in the declining sentiment toward consumer health and the economy.
According to Ross Mayfield, financial strategist at Baird Private Wealth Management, “All of that comes together to call into question the underpinning of what has been the strength of the U.S. economy the last couple of years, which is the consumer and the job market.”
For protection, investors looked to the U.S. bond market. The benchmark 10-year Treasury yield dropped below 4.3%, its lowest since December. Bond yields and prices fluctuate in opposition to one another.
Bitcoin, which has been linked to equities, dropped to a three-month low below $90,000. The flagship cryptocurrency is purchasing over 20% lower than when it peaked on President Donald Trump’s inauguration.
Due to growing fears about the recession, shares of major bank equities rolled over on Tuesday. JPMorgan Chase, Wells Fargo, and Goldman Sachs had more things.
The market’s momentum stocks, which have been driving its advances, also fell. Along with Nvidia, Palantir had a 3% decline, resulting in a weekly stock decline of around 13%. Tuesday’s session saw a 1.6% decrease in Meta Platforms. Tesla, a popular brand among individual investors, declined almost 8%. Tesla’s market value fell below $1 trillion due to the decline.
Growing trade fears are also exacerbating market instability. President President Trump declared Monday that rump declared Monday that tariffs on imports from Canada and Mexico “will go forward” after the current 30-day moratorium expires. A Bloomberg News article claims that the White House is also preparing to impose further restrictions on China’s semiconductor exports.
For more information on the state of the artificial intelligence market, investors are also anticipating Nvidia’s quarterly earnings report, which is scheduled for Wednesday after the bell. In 2025, shares are down almost 5%, underperforming the market as a whole.
Both the Nasdaq Composite and the S&P 500 ended Tuesday’s trading session down. 0.47% was the decline in the broad market index. The tech-dominated Nasdaq fell 1.35 percent. The Dow Jones Industrial Average, meanwhile, was able to increase by 159.95 points, or 0.37%.
Tuesday is the worst day for Trump Media & Technology since January 27, down by 7.4%. The stock is headed for its longest losing run since early September, with losses expected to continue for the seventh day in a row. Since President Trump took office, the stock has lost over 40% of its value. As the former retail darling continues its downward decline, Palantir shares are more than 30% below their peak.
Just last week, the defense business revealed a fresh stock sale strategy led by CEO Alex Karp, which caused the price to drop 15%. Investors were also alarmed by a plan to reduce defense expenditures published by The Washington Post.
Investors who had been providing the stock, which was up more than 340% in 2024 and the best-performing company in the S&P 500, were alarmed by those events. It increased by more than 14% in 2025. The stock was down around 4% on Tuesday.
