S&P 500 slides as consumer confidence wanes

The stock market faced another challenging Tuesday as various indexes posted significant declines amid weakening consumer confidence data. The S&P 500 fell for the fourth consecutive session, slipping 0.47% to close at 5,955.25. The Nasdaq Composite dropped 1.35% to end the day at 19,026.39, driven by a 2.8% fall in Nvidia shares. Meanwhile, the Dow Jones Industrial Average managed to inch up 159.95 points, or 0.37%, closing at 43,621.16, buoyed mainly by performance in select sectors. Investor sentiment hit following the latest consumer confidence survey from the Conference Board, which came in below expectations. This added to last week’s disappointing manufacturing and retail sales data, creating further anxiety about the strength of consumer spending and the economy.

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  “The consumer and the job market have been the pillars of the U.S. economy over the last couple of years, but current data calls these foundations into question,” said Ross Mayfield, an investment strategist at Baird Private Wealth Management. In response to the unease, investors sought safety in the U.S. bond market. The benchmark 10-year Treasury yield dipped below 4.3%, the lowest level since December, as demand for safer assets increased.

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Meanwhile, Bitcoin also saw a downturn, trading at a three-month low and almost 20% below its all-time high. Bank stocks suffered on Tuesday due to rising recession fears, with major institutions dropping more than 1% each. High-flying “momentum stocks” that had fueled market gains also declined, including Nvidia, which lost 3%, and Tesla, whose shares plunged more than 8% as market uncertainties mounted. Heightened trade tensions are also impacting market sentiment.

Three takeaways from quite a day in financial markets:
A sharp fall in US stocks (first chart below) as the White House confirmed a new round of tariffs as of tomorrow on Canada, Mexico (both 25%), and China (10% on top of the prior 10%).
Pushed lower by growth concerns, US… pic.twitter.com/xz6KkZ1aRo

— Mohamed A. El-Erian (@elerianm) March 3, 2025

Consumer sentiment rattles stock market

President Trump announced new tariffs on imports from Canada and Mexico, set to take effect after the current 30-day moratorium ends. The White House is also preparing tighter regulations on semiconductor exports to China, adding to the market’s apprehensions. Investors are closely watching Nvidia’s upcoming quarterly earnings report, which is expected to provide more insights into the health of the artificial intelligence and tech sectors. The company’s shares have dropped more than 5% in 2025, underperforming the broader market.

Key Market Movers:

– Trump Media: Shares tumbled 7.4%, marking its worst day since January 27. Palantir: The stock fell by about 4% and is now more than 30% below its recent high due to concerns over new stock sales and defense budget cuts. – Hims & Hers Health: Shares plunged over 27% following an announcement that overshadowed its fourth-quarter earnings beat, marking the stock’s largest percentage decline ever. – Krispy Kreme: The doughnut chain’s stock dropped 24% after missing fourth-quarter expectations. – Chegg: The online education company’s stock fell 28% due to a net loss and declining revenue. Financial Sector Rundown: February has been challenging for financials, with significant declines across several major institutions and funds.

This trend underscores the broader consumer confidence issues

The sector’s sensitivity to economic data and investor sentiment. The coming weeks will likely remain volatile as the market reacts to ongoing economic data releases, earnings reports, and geopolitical developments. Investors are advised to remain cautious and stay updated on key market movements. Image Credits: Photo by RDNE Stock project on Pexels