Stock market today: S&P 500 jumps but in Q1 loss as ’liberation day’ tariffs looms

Investing.com-- The S&P 500 closed higher Monday, as a dip to six-month lows drew support, but the index ended the first quarter lower just days ahead of President Donald Trump’s April 2 "liberation day" deadline to impose more reciprocal tariffs. 

At 4:00 p.m. ET (20:00 GMT), the Dow Jones Industrial Average rose 431 points, or 1%, the S&P 500 index added 0.5%, and the NASDAQ Composite fell 0.2%. The S&P 500 ended Q1 down 5%, snapping its five-quarter winning streak. 

Trump ‘liberation day’ tariffs will be country based 

Ahead of the so-called "liberation day", when President Trump is expected to unveil several more trade tariffs, White House press secretary Karoline Leavitt said the tariffs would be country-based rather than sector-based, though added that the president remains committed to sectorial tariffs.   

A WSJ report over the weekend said Trump will consider higher tariffs against a broader range of countries, as he embarks on a trade agenda aimed at correcting alleged trade imbalances against the U.S.

The U.S. president rattled markets last week by imposing a 25% tariff on all non-American cars. The tariff will take effect from April 2, where Trump could also announce tariffs against other sectors such as commodities, semiconductors and pharmaceuticals.

Markets fear that Trump’s tariffs, which will be borne by U.S. importers, will underpin inflation and compromise U.S. economic growth in the coming months. 

Goldman Sachs sees a 35% chance of a recession in the next 12 months, and also expects inflation to rise further above the Federal Reserve’s 2% target in 2025. 

Jobs report looms large 

This week sees an abundance of major economic releases, including the all-important jobs report for March.

The U.S. economy is tipped to have added 139,000 roles in March, down from 151,000 in the previous month, while the unemployment rate is seen equaling February’s mark of 4.1%.

Prior to the release of the nonfarm payrolls figures on Friday, measures of private hiring and job openings will also be published, along with separate numbers tracking manufacturing activity.

Wall Street indexes fell sharply on Friday after PCE price index inflation- the Fed’s preferred inflation gauge- read higher than expected for February. 

The reading gives the Fed more impetus to keep interest rates steady for longer, especially in the face of heightened uncertainty over the economy. 

Tesla to reveal Q1 deliveries; Coreweave drops; Mr. Cooper Group jumps on deal activity; 

Tesla (NASDAQ:TSLA) is expected to unveil first-quarter deliveries data this week, with analysts and investors bracing for a potential drop in the proxy for the electric vehicle maker’s sales.

The numbers, which are due out on April 2, are projected to show a decline in the figure versus the year-ago period, as the company contends with a backlash to CEO Elon Musk’s political activities that have led to protests at showrooms. 

CoreWeave Inc (NASDAQ:CRWV) fell more than 7% just days after making its public debut. The Nvidia-backed company opened trading its below IPO price on Friday.  

Mr. Cooper Group Inc (NASDAQ:COOP) shrugged off the broader market malaise, rising more than 14% after the mortgage services provider agreed to be aquired by Rocket Companies in a $9.4B deal.

Vaccine makers including Novavax Inc (NASDAQ:NVAX), Taysha Gene Therapies Inc (NASDAQ:TSHA) and Solid Biosciences LLC (NASDAQ:SLDB) were in selloff mode after top vaccine official Peter Marks resigned, citing concerns about the Trump administration’s plans to overhaul federal health agencies.      

(Peter Nurse, Ambar Warrick contributed to his article.)