Source: Sharecast
"US markets remained on track for their second straight day of falling share prices. The lingering threat of new tariffs being imposed by President Trump led to a rise in the gold price on safe haven flows and an outflow of US stocks into Asian and European indices," said Axel Rudolph, senior technical analyst at IG.
The Dow dropped 1.0%, the S&P 500 fell 0.8% while the Nasdaq slipped 0.9%.
The S&P 500 in particular was down for the second day after settling at 5,686.67 on Friday – its highest close since 27 March.
Investors continued to react to newsflow regarding potential trade talks. Reports that the White House was nearing a deal with India were in focus after the South Asian nation proposed zero tariffs on steel, auto components and pharmaceuticals on a reciprocal basis, up to a certain amount of imports.
Meanwhile, Donald Trump met with new Canadian prime minister Mark Carney, who pushed back at the president's ongoing assertion that Canada should become the 51st state. “Having met with the owners of Canada over the course of the campaign the last several months, it’s not for sale. It won’t be for sale, ever," Carney said.
All eyes were also firmly focused on the Fed early on Tuesday as the central bank begins its two-day policy meeting. While policymakers are widely expected to keep rates unchanged, investors are hoping to gain more insight into the Fed's outlook at its first meeting since Trump announced his "reciprocal" tariffs at the start of April. Fed funds futures suggest just a 2.7% chance of the central bank cutting rates.
"We expect [chair Jerome] Powell's recent policy guidance suggesting patience to be reiterated given economic conditions have not shifted in a material way despite looming tariffs," said analysts at TD Securities.
On the macro front, the US trade deficit widened to a fresh record high of $140.5bn in March, according to the Bureau of Economic Analysis, wider than forecasts of $137.0bn. Imports jumped 4.4% to an all-time high of $419.0bn, while exports were up just 0.2%.
Market movers
Cereal maker WK Kellogg finished more or less flat after delivering a gloomy outlook to the market. The company lowered its sales and profit forecasts for 2025, citing a weaker-than-expected first quarter and a "modest impact" from trade tariffs.
In recent days, a number of household names, from Ford to Mattel, have lowered or suspended their guidance for the current year as they continue to calculate how tariffs will affect demand and bottom lines.
Nevertheless, Ford finished the day firmly higher – despite warning of "near-term risks" – after first-quarter results beat market forecasts.
Marriott also managed to top estimates with quarterly results, but lowered its RevPAR guidance for the full year due to macro uncertainty.
Online food delivery company DoorDash dropped sharply after posting first-quarter revenues and orders that fell short of expectations. The company also announced it would be dropping more than $5bn in separate deals to buy UK rival Deliveroo and booking platform SevenRooms.
Dow Jones - Risers
Verizon Communications Inc. (VZ) $44.15 1.40%
McDonald's Corp. (MCD) $316.79 0.34%
Salesforce.Com Inc. (CRM) $273.36 0.27%
Procter & Gamble Co. (PG) $159.25 0.26%
Travelers Company Inc. (TRV) $268.05 0.19%
Chevron Corp. (CVX) $135.60 0.07%
Walt Disney Co. (DIS) $92.17 0.07%
Coca-Cola Co. (KO) $71.72 0.03%
Dow Jones - Fallers
Merck & Co. Inc. (MRK) $79.04 -4.59%
Amgen Inc. (AMGN) $270.44 -3.43%
Unitedhealth Group Inc. (UNH) $394.51 -2.54%
3M Co. (MMM) $138.02 -1.97%
Goldman Sachs Group Inc. (GS) $549.36 -1.82%
Intel Corp. (INTC) $19.94 -1.63%
JP Morgan Chase & Co. (JPM) $249.25 -1.31%
American Express Co. (AXP) $275.37 -0.96%
Walmart Inc. (WMT) $98.55 -0.79%
Caterpillar Inc. (CAT) $320.89 -0.69%
S&P 500 - Risers
Celanese Corp. (CE) $49.05 9.56%
Sealed Air Corp. (SEE) $28.94 5.12%
Vornado Realty Trust (VNO) $38.36 3.68%
Universal Health Services Inc. (UHS) $184.16 3.35%
Newmont Corporation (NEM) $54.61 2.96%
Take-Two Interactive Software Inc. (TTWO) $231.84 2.89%
Mattel Inc. (MAT) $16.65 2.78%
Ford Motor Co. (F) $10.44 2.65%
Alaska Air Group Inc. (ALK) $49.94 2.65%
AT&T Inc. (T) $28.16 2.36%
S&P 500 - Fallers
Ipg Photonics Corp. (IPGP) $54.91 -13.02%
Vertex Pharmaceuticals Inc. (VRTX) $450.03 -10.03%
Coterra Energy Inc. (CTRA) $22.93 -9.26%
Kohls Corp. (KSS) $6.52 -7.65%
Regeneron Pharmaceuticals Inc. (REGN) $558.52 -7.47%
Nektar Therapeutics (NKTR) $0.64 -6.58%
Jacobs Solutions Inc. (J) $119.47 -5.65%
Eli Lilly and Company (LLY) $775.12 -5.64%
Transdigm Group Inc. (TDG) $1,391.86 -5.48%
Zoetis Inc (ZTS) $149.87 -5.18%
Nasdaq 100 - Risers
Qvc Group Inc Series A (QVCGA) $0.24 42.77%
Take-Two Interactive Software Inc. (TTWO) $231.84 2.89%
T-Mobile Us, Inc. (TMUS) $253.80 2.22%
Charter Communications Inc. (CHTR) $402.01 1.97%
Marriott International - Class A (MAR) $251.96 1.90%
Starbucks Corp. (SBUX) $82.78 1.37%
Trip.com Group Limited (TCOM) $61.22 1.21%
Baidu Inc. (BIDU) $91.23 1.07%
Sirius XM Holdings Inc (SIRI) $21.47 0.85%
Vodafone Group Plc ADS (VOD) $9.67 0.73%
Nasdaq 100 - Fallers
Vertex Pharmaceuticals Inc. (VRTX) $450.03 -10.03%
Regeneron Pharmaceuticals Inc. (REGN) $558.52 -7.47%
Gilead Sciences Inc. (GILD) $97.88 -4.80%
Fastenal Co. (FAST) $78.50 -4.76%
Illumina Inc. (ILMN) $74.53 -4.66%
Biogen Inc (BIIB) $116.82 -4.09%
Incyte Corp. (INCY) $59.61 -4.03%
Biomarin Pharmaceutical Inc. (BMRN) $59.64 -3.90%
Amgen Inc. (AMGN) $270.44 -3.43%
DENTSPLY Sirona Inc. (XRAY) $13.37 -3.40%