MARKETS TREND
The market trend factors in multiple indicators, including Simple Moving Average, Exponential Moving Average, Pivot Point, Bollinger Bands, Relative Strength Index, and Stochastic.
The Nasdaq index closed 2% lower ahead of the auto tariffs announcement, while Ford stock tumbled 5% in after-hours, when tariffs were announced.
US stocks end the day lower
Donald Trump has announced a 25% tariff on all cars not manufactured in the United States, adding to the existing tariffs already in place.
During the announcement, Trump stated that foreign automakers will be encouraged to build manufacturing plants in the U.S. rather than exporting vehicles to the country. According to an aide, the tariff will also apply to light trucks, and an additional round of tariffs is set to take effect on April 2.
The new tariff policy will introduce reciprocal trade measures, meaning tariffs will be adjusted based on the trade barriers imposed by other countries. Trump emphasized that if a car is assembled outside the U.S. but contains American-made parts, those parts will not be subject to tariffs.
Additionally, the administration is proposing a tax incentive to support U.S. car manufacturing. Under the plan, interest payments on auto loans will be tax-deductible— but only if the vehicle is built in the United States. This initiative aims to encourage domestic car purchases and boost local manufacturing.
Nasdaq Chart Daily – The 200 SMA Acting As Resistance
The combination of slowing AI investment and the White House’s impending announcement of auto tariffs (4 p.m. ET) placed the market in the mood to reduce risk. The market’s drop reflects investor caution ahead of impending trade policy decisions and economic reports. While the Nasdaq led the losses, the S&P 500 and Dow also fell, indicating that mood remains fragile.
The Canadian market followed suit, hampered by lower commodity prices. The focus now switches to the April 2 trade tariff announcements and significant economic data releases, which may set the tone for the next market move. If trade tensions relax, markets may recover fast, but volatility is still expected.
US Stock Market Recap – Major US and Canadian Indices Decline
Key Closing Levels
S&P 500 finished at 5,712.20 points, falling -64.45 points (-1.12%).
Nasdaq Composite dropped sharply, closing at 17,899.02 points, down -372.84 points (-2.04%).
Dow Jones Industrial Average closed at 42,454.79 points, declining -132.71 points (-0.31%).
Toronto S&P/TSX Composite Index ended at 25,161.06 points, down -178.45 points (-0.70%).
Market Overview & Performance
The Nasdaq Composite led the decline among major indices, driven by a sell-off in tech stocks ahead of the April 2 trade tariff decision.
The S&P 500 also experienced a notable drop, as investors took profits following last week’s strong gains.
The Dow Jones Industrial Average fared slightly better but still closed in negative territory, weighed down by cautious sentiment in industrial and financial stocks.
The TSX Composite in Canada followed the broader downtrend, impacted by weaker oil prices and concerns about global trade disruptions.
Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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