United States stock markets ended mixed on Tuesday (Wednesday AEDT) as weaker-than-expected consumer confidence data added to investor concerns over economic growth and trade policy.
The Dow Jones Industrial Average bucked the trend, rising 160 points or 0.4%, to 43,621.2, the S&P 500 slid 0.5% to close at 5,955.3, marking its fourth consecutive losing session, while the Nasdaq Composite dropped 1.4% to 19,026.4, dragged down by a 2.8% decline in Nvidia.
Markets reacted negatively to the latest consumer confidence survey from the Conference Board, which came in well below forecasts.
Stephanie Guichard, Senior Economist, Global Indicators at The Conference Board noted that the index “registered the largest monthly decline since August 2021”, while the ”expectations Index was below the threshold of 80 that usually signals a recession ahead".
The disappointing report follows last week’s weak manufacturing and retail sales data, adding to fears of a slowdown.
Walmart’s cautious outlook last week further dampened sentiment, raising concerns about consumer spending.
Investors moved into safer assets, driving the benchmark 10-year Treasury yield below 4.3%, its lowest level since December.
Major technology and growth stocks, which have fueled recent market gains, were among the biggest decliners.
Palantir fell 3.1%, Meta Platforms lost 1.6%, while Tesla tumbled 8.4%.
Bank stocks also weakened amid rising recession fears as Goldman Sachs, Wells Fargo, and JPMorgan Chase declined 1.8%, 1.6%, and 1.5%, respectively.
Trump Media & Technology also tumbled 7.4% on Tuesday, marking their worst day since January 27, down roughly 40% since Donald Trump took office.
Bitcoin, often correlated with risk assets, slipped below US$90,000, marking a three-month low. The cryptocurrency is now down nearly 20% from its record high reached earlier this year.
Geopolitical and trade concerns added to market uncertainty. President Donald Trump confirmed that tariffs on Canadian and Mexican imports would proceed after the current 30-day suspension ends.
Investors are closely watching Nvidia’s quarterly earnings report, due after Wednesday’s market close, for further insight into the artificial intelligence sector’s strength.
