Josh Weiner
Global markets started the week on edge as Dow Jones, S&P 500, and Nasdaq futures saw a sharp decline amid uncertainty over new Trump tariffs. Investors are bracing for another wave of trade restrictions, while Tesla’s highly anticipated first-quarter delivery numbers are also set to shake the market.
Market Reaction: Stocks Slide Amid Trade Uncertainty
After a strong start last week, markets turned volatile following Trump’s announcement of new auto tariffs and higher-than-expected inflation data.
🔹 Nasdaq futures dropped 1.6%, while S&P 500 futures fell 1.2%.
🔹 Dow Jones futures declined 0.8%, reflecting broader market uncertainty.
🔹 The 10-year Treasury yield edged lower to 4.2% as investors sought safer assets.
Adding to the uncertainty, AI chip stocks took a hit as China imposed fresh restrictions on Nvidia (NVDA) products, raising concerns about weakening AI hardware demand.
Trump Tariffs: Another Trade War on the Horizon?
On April 2, former President Donald Trump is expected to unveil a new wave of tariffs, dubbed “Liberation Day Tariffs.” These measures aim to counter foreign trade barriers on U.S. goods, but the scope and scale of the tariffs remain unclear.
Key developments:
✅ 25% auto tariffs on foreign-made vehicles take effect April 3.
✅ Tariff exemptions on certain Canadian and Mexican imports expire soon.
✅ Expected tariffs on copper, lumber, pharmaceuticals, and other goods.
✅ Europe may retaliate with restrictions on U.S. tech and service exports.
Trade tensions escalated further as Trump threatened secondary tariffs on Russian oil, criticizing Vladimir Putin’s handling of the Ukraine conflict.
Tesla’s Q1 Delivery Numbers: Make-or-Break Moment
Investors are closely watching Tesla (TSLA) as it prepares to release first-quarter delivery and production figures on April 2.
🔹 Consensus estimates: 412,000 EVs delivered, up from 386,810 last year.
🔹 Revised expectations: Some analysts predict a drop to 355,000-380,000 units.
🔹 Tesla stock surged 6% last week, breaking a nine-week losing streak but still down 34.7% in 2025.
CEO Elon Musk made waves by announcing that his AI company, xAI, has acquired X (formerly Twitter) for $33 billion in stock—fueling speculation about the future of both platforms.
Meanwhile, Chinese EV competitors like XPeng, Li Auto, Nio, and BYD are also set to announce Q1 sales figures, with some already warning of weaker-than-expected demand.
Stock Market Trends: Defensive Moves Dominate
Markets turned bearish after an initial rally fueled by hopes of a limited trade war. Instead, fears of expanding tariffs, rising inflation, and weak tech earnings caused:
📉 Dow Jones fell 1% last week.
📉 S&P 500 dropped 1.5%, now trading below its 200-day moving average.
📉 Nasdaq composite plunged 2.6%, nearing recent lows.
Growth stocks such as Palantir (PLTR) and Rubrik (RBRK) saw sharp reversals, with Nvidia shedding 6.8% in one week. Defensive sectors held steady but saw little upside.
What’s Next for Investors?
With major indexes below key technical levels, many traders are holding cash and waiting for clarity. While the market could rebound on unexpected news, the next phase of Trump tariffs and Tesla’s delivery figures will likely determine short-term sentiment.
For now, caution remains the best strategy, with investors watching for stocks showing relative strength and resilience amid the uncertainty.
