The session outcome indicates that the Dow Jones Industrial Average gained 1.00%, and the broader S&P 500 advanced 0.55%, although it concluded the worst quarter since 2022.
Meanwhile, the tech-heavy Nasdaq fell by 0.14%.
According to Sam Stovall from CFRA, stocks were “oversold, which means there was significant stock market dynamics” amid fears sparked by the trade war initiated by Donald Trump.
Today’s session “suggests that investors think this is a short-term weakness,” but they are nevertheless seeking to direct their investments toward “stocks that tend to hold up better during market downturns.”
As a result, defensive stocks, which are theoretically less sensitive to economic changes, posted gains, explaining the strong performance of the Dow Jones.
Conversely, those that have underpinned stock market growth recently were hit, including big technology names such as Tesla (-1.67%), Amazon (-1.28%), Meta (-0.07%), Microsoft (-0.90%), and Nvidia (-1.18%).
Stovall noted that traders “benefitted from an oversold situation, as they knew the new tariff rates wouldn’t begin until Wednesday.”
However, “we might witness more sales if the president becomes even more categorical about the surcharges he’s going to impose on our partners,” he added.
After steel and aluminum, and before the automotive sector, Trump plans to expand action on Wednesday with what he calls “reciprocal” tariffs.
On April 2, which he has dubbed “liberation day,” Trump intends to erect new trade barriers that are expected to depend on the tariffs levied by the countries involved on U.S. products.
Trump has left many uncertainties as the day approaches, especially regarding which countries will be affected.
