US markets managed to eke out gains on Tuesday despite disappointing consumer confidence data, as investors remained cautiously optimistic about the scope of upcoming tariff announcements. The Dow Jones Industrial Average closed just above the flat line at 42,587.50 points, while the S&P 500 added 0.2%. The Nasdaq outperformed with a 0.5% gain to 18,271.86 points, driven by a late surge in technology stocks.
US Markets Key Market Movers.
Tesla Inc. extended its impressive five-day rally, surging 28% over the period with a 3.45% daily gain, while Nvidia Corp. faced a decline. The technology sector’s performance provided a much-needed boost to the Nasdaq, offsetting broader market concerns.
U.S Consumer Confidence Declines
Investor sentiment on US Markets was tempered by the March consumer confidence data release, which revealed a significant drop in US consumers’ near-term outlook on income, business, and job conditions. The Conference Board’s monthly confidence index fell to 92.9, missing estimates of 93.5. The measure of future expectations plummeted to 65.2, marking a 12-year low and falling well below the 80 threshold, often seen as a recession indicator.
Analysts forecasters remain divided on the trajectory of US equities. HSBC Holdings Plc downgraded US stocks to underweight, citing economic concerns, while JPMorgan Chase & Co. suggested that emerging clarity on tariffs could alleviate some risks, warranting a pause in the rally-fading approach.
The downgrade comes not long after the bank lowered its rating for US Markets to Neutral. On March 10, the firm highlighted factors such as tariffs and President Donald Trump’s changing view on NATO allies, which increased market volatility.
Charles Ashley of Catalyst Funds highlighted the uncertainty among market participants, stating, “Markets in the near term are going to be choppy. There’s a little bit of paralysis with market participants not knowing what to do because they don’t know what policy is going to go into place.”
The debate over the risk/reward balance continues, with some strategists expressing caution about the sustainability of the recent rebound on US Markets. Jonathan Krinsky of BTIG noted, “The issue at this point is the risk/reward is much less favorable than when the S&P 500 was around 5,500-5,600. While we are open to the possibility of the S&P 500 going back above 6,000, it’s not our base case.”
As US markets navigate these mixed signals, investors are likely to remain focused on upcoming economic data and policy announcements, particularly the tariffs set to be unveiled on April 2.
Also Read: Asian Markets Down Despite Trump Offer on Tariff Breaks
