Traders work on the floor at the New York Stock Exchange in New York City, U.S., March 24, 2025.
Jeenah Moon | Reuters
U.S. stocks edged higher Tuesday as investors tried to build on the previous session’s gains, which were largely sparked by hopes of U.S. tariffs being narrower in scope.
The Dow Jones Industrial Average added 80 points, or 0.2%. The S&P 500 added 0.2%, while the Nasdaq Composite gained about 0.4%.
Investors largely looked past the March consumer confidence data released Tuesday, which reflected a significant drop in U.S. consumers’ near-term outlook on income, business, and job conditions.
The Conference Board’s monthly confidence index fell to 92.9, below a Dow Jones forecast of 93.5. The measure for future expectations dropped to 65.2, the lowest reading in 12 years and well below the 80 level considered to be a signal for a recession ahead.
“Sentiment continues to wane among investors, consumers and businesses as economic concerns and economic policy uncertainty takes its toll,” said Bret Kenwell, U.S. investment analyst at eToro. “Until there’s more certainty on the tariff and macro front, sentiment and confidence remain vulnerable.”
Kenwell pointed out that this week’s GDP and PCE reports, the latter of which serves as the Federal Reserve’s preferred inflation gauge, as well as next week’s jobs report, may give further clarity on the state of the economy.
Wall Street has been on edge recently over a potential uptick in inflation and slowing economic growth as it awaits President Donald Trump’s reciprocal tariffs expected on April 2. Investors got a reprieve Monday on news that on reports that the White House may narrow the scope of tariffs going into effect.
Trump later told the press that he “may give a lot of countries breaks” on reciprocal tariffs. He added that duties on certain sectors, such as pharmaceuticals and autos, would still be coming in the “near future.”
The news sent stocks sharply higher on Monday, with the Dow soaring more than 600 points. It’s been a rocky past month for stocks. At one point earlier this month, the S&P 500 closed in correction territory.
