U.S. stock market today: Dow Jones gains, S&P 500 steady, Nasdaq falls; Intel surges, Tesla plummets as Retail sales miss estimates & Fed meeting looms

U.S. stock market is once again at a crossroads. After weeks of volatility, investors are looking for direction amid mixed economic data, shifting Federal Reserve expectations, and uncertainty surrounding Trump’s tariff policies. On Monday, the S&P 500 (^GSPC) barely held onto gains, while the Dow Jones Industrial Average (^DJI) rose 0.4%, and the Nasdaq Composite (^IXIC) slipped 0.5%. But what’s driving the turbulence?

U.S. stock markets exhibited mixed performances across major indices:

• Dow Jones Industrial Average (DJIA): The DJIA rose by 0.5%, gaining approximately 219 points to close at 41,662.05.
  
  
• S&P 500: The S&P 500 edged up 0.2%, reflecting a modest increase.
  
  
• Nasdaq Composite: The Nasdaq Composite experienced a slight decline of 0.4%.
  
  

These movements occurred amid weaker-than-expected retail sales data and investor anticipation of the Federal Reserve's upcoming meeting, where interest rates are expected to remain unchanged.


Year-to-date, the indices have faced challenges:

• DJIA: Decreased by 2.5%.
  
  
• S&P 500: Declined by 4.1%.
  
  
• Nasdaq Composite: Fallen by 8.1%.

Top Gainers:

• Intel Corporation (INTC): Shares soared by 7.6% following reports of the new CEO, Lip-Bu Tan, planning a comprehensive restructuring of the company's manufacturing and artificial intelligence operations.
  
  
• NRG Energy (NRG): The stock surged 13.97%, leading the S&P 500 gainers for the day.
  
  
• Range Resources (RRC): Experienced a 6.57% increase, reflecting strong performance in the energy sector.
  
  

Top Losers:

• Incyte Corporation (INCY): The biopharmaceutical company's shares declined by 9.45%, making it the top loser on the S&P 500.
  
  
• Tesla, Inc. (TSLA): The electric vehicle manufacturer's stock dropped 6%, marking its eighth consecutive week of losses. Factors contributing to this decline include CEO Elon Musk's political activities and broader market challenges.
  
  
• Dollar General (DG): Shares fell by 4.84%, reflecting challenges in the retail sector.

Why is the U.S. stock market struggling to find stability?

Wall Street has been grappling with several headwinds. The S&P 500 recently entered correction territory, marking a decline of more than 10% from its recent high. The Dow also posted its worst weekly performance since March 2023. The biggest culprits? Economic slowdown fears and the unpredictability of Trump’s trade policies.

Treasury Secretary Scott Bessent added fuel to the fire on Sunday. Speaking on NBC’s “Meet the Press,” he dismissed concerns over the recent market slump, stating that "corrections are healthy." However, his remark that there are "no guarantees" the U.S. will avoid a recession rattled investors.

What does the latest retail sales data reveal?

Retail sales—a crucial indicator of consumer spending—came in weaker than expected. February sales rose just 0.2%, falling short of the 0.6% estimate. Even worse, January’s 0.9% decline was revised down to a steeper 1.2% drop. This signals potential cracks in consumer demand, raising concerns about broader economic health.

How did the Federal Reserve’s manufacturing report impact markets?

The New York Fed’s business conditions index fell sharply in March, plunging from 5.7 in February to -20. A drop of this magnitude underscores the challenges manufacturers face, further heightening fears of an economic slowdown.

Will the Federal Reserve’s decision influence market direction?

The Federal Reserve kicks off its two-day policy meeting on Tuesday. While rates are expected to remain unchanged, investors will scrutinize any commentary regarding future rate cuts. With inflation still a concern and economic indicators flashing mixed signals, the Fed’s stance could significantly impact market sentiment.

How are Trump’s policies affecting Wall Street?

Trump’s tariff policies remain a wild card for investors. The president’s abrupt moves on global trade, coupled with an ongoing push to overhaul government agencies, have heightened market anxiety. Investors fear that increased trade tensions could weigh on corporate earnings and overall economic growth.

Despite Monday’s attempt at a rebound, the Nasdaq remains in correction territory, down 12% from its peak. Meanwhile, analysts are split on where the market goes from here. CFRA Research’s Sam Stovall believes the S&P 500 correction may bottom out around 5,400—a roughly 4% further decline from Friday’s close. Others argue that ongoing economic and policy uncertainties could drive additional market swings.

FAQs:

Why is the U.S. stock market volatile today?
Stock fluctuations stem from weak retail sales, recession fears, and Federal Reserve policies.

How did the Dow Jones perform today?
The Dow gained 0.4%, showing resilience despite market uncertainties.