U.S. Markets End Mixed Amid Tariff Uncertainty
The U.S. trading session on Tuesday closed with a mixed performance, as investors awaited an anticipated tariff announcement from President Donald Trump. The Nasdaq Composite led the way with a gain of nearly 0.9%, followed by a 0.4% increase in the S&P 500, while the Dow Jones Industrial Average finished the day virtually unchanged.
Growth-focused sectors such as consumer discretionary and technology outperformed, while healthcare underperformed. A major drag came from Johnson & Johnson, whose shares declined by more than 7.5% after a U.S. bankruptcy judge rejected the company’s talc settlement proposal.
Market volatility has remained elevated since mid-February, primarily due to the uncertainty surrounding Trump’s tariff policy. The S&P 500 has since fallen about 8% from its all-time high. While clarity is expected soon, varied market reactions are likely to persist.
Economic Indicators and Regional Market Overview
European Markets Bounce Back
In Europe, markets saw a rebound, with both the Stoxx 50 and Stoxx 600 gaining over 1%. This recovery followed a 2.2% year-on-year rise in Eurozone inflation, helping lift sentiment after four consecutive sessions of losses amid ongoing trade uncertainties.
U.S. Economic Data Shows Softness
U.S. economic reports highlighted slightly weaker-than-expected job openings and a contraction in manufacturing demand, hinting at possible softness in the economy. Despite these challenges, investors holding a diversified equity portfolio have benefited during this period of volatility.
Asian Equities Remain in Narrow Range
Asian markets were mixed during Wednesday’s trading session:
- Japan’s Nikkei 225 remained largely flat
- Hong Kong’s Hang Seng rose 0.4%
- South Korea’s KOSPI fell 0.3%, amid political instability
- China’s Shanghai Composite edged up 0.2%
- Australia’s S&P/ASX 200 and Singapore’s Straits Times Index recorded modest changes
Investor focus across Asia remained on the expected U.S. tariff announcement.
Currency and Commodity Update
The U.S. dollar strengthened slightly on Wednesday. The euro held at $1.0792, while sterling remained unchanged at $1.2924. Market participants maintained a cautious stance ahead of further developments on the tariff front.
Oil prices were relatively stable, as investors awaited both Trump’s tariff announcement and the upcoming OPEC+ meeting, where increased production could be discussed. While geopolitical tensions have supported crude prices, concerns over trade-related impacts on global growth and energy demand kept gains limited.
Company News: Equities on the Move
Visa Seeks Apple Card Deal
Visa has made a $100 million offer to Apple to replace Mastercard as the issuer of the Apple Card. American Express is also in the running. Goldman Sachs, which previously held the partnership, has exited the alliance. Other contenders reportedly include Barclays, Synchrony Financial, and JPMorgan Chase.
Santander Expands in the Americas
Banco Santander has secured a Canadian banking licence, a major step in its expansion across the Americas. The bank continues to strengthen operations in the U.S. and Mexico, including the launch of new digital banking services.
Hims & Hers to Offer Zepbound
Hims & Hers Health disclosed plans to offer Eli Lilly’s weight-loss drug Zepbound through its telehealth platform. The stock reacted positively, with shares climbing over 5% in Tuesday’s session.
Estée Lauder Faces Shareholder Lawsuit
A U.S. federal judge has ruled that Estée Lauder must face a lawsuit over allegations of misleading investors regarding the impact of China’s grey-market “daigou” sales crackdown. The complaint claims the company concealed risks, leading to a sharp stock price decline.
Boeing Added to JPMorgan Analyst Focus List
JPMorgan has included Boeing in its Analyst Focus List, citing strong production momentum, improving deliveries, and notable contracts such as the F-47 deal. The firm maintains an Overweight rating, expressing growing confidence in Boeing’s resilience and future growth.
Airline Stocks Downgraded by Jefferies
Jefferies downgraded several major airline stocks, including American Airlines, Delta, Air Canada, and Southwest Airlines, due to weak consumer sentiment, slower revenue growth, and macro uncertainty. United Airlines remains the firm’s only Buy-rated airline.
Lululemon Downgraded by Argus Research
Argus Research downgraded Lululemon Athletica to “hold” from “buy”, pointing to concerns over an ageing product line, U.S. tariffs, and intensifying competition from Nike and Under Armour. Although the company retains strong margins and financial stability, U.S. sales are expected to weaken in fiscal 2026. The firm also lowered its EPS forecast, but maintained a 19% long-term growth outlook.
Key Data and Events to Watch
The following are the major economic and policy events on the calendar:
- U.S. ADP employment change for March
- February factory orders
- President Trump’s announcement on reciprocal tariffs
- European Central Bank speeches
- Bond auctions
- Final HCOB Manufacturing PMIs for March
- Unemployment and inflation data across Europe
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