The Dow Jones Industrial Average whipsawed Monday while the S&P 500 touched bear market territory as President Donald Trump issued a new tariff threat to China despite dire warnings from billionaire hedge fund manager Bill Ackman. Bargain retailer Dollar Tree managed to pop after a bullish call, while Nvidia and Palantir Technologies squeezed out gains on the stock market today.
Stocks made another negative start to the week amid an ongoing sell-off, but violently swung between gains and losses as the chances of a technical bounce rise. The Dow Jones Industrial Average fell 349 points, or 0.9%.
Nvidia was strongest here, rising 3.5%. Amazon.com and JPMorgan Chase were also outperforming. Apple was among the worst laggards, plunging nearly 4%.
Outside of Magnificent Seven names, JPMorgan Chase and 3M were the best performers on the Dow. Home Depot and Travelers were among the worst laggards, with each falling more than 3%.
The Nasdaq composite, which entered bear market territory Friday, wavered and ended the day only a fraction higher. AppLovin shined with a gain of nearly 6%. Microchip Technology and Grail were among other top gainers. Palantir finished more than 5% higher.
Bitcoin play Strategy, formerly called MicroStrategy, plunged nearly 9% after warning of losses. China stock PDD was also under heavy selling pressure and lost 4%.
Stock Market Today: Real Estate Lags, Treasury Yields Spike
The S&P 500 fell into bear market territory after dipping more than 20% from its Feb. 19 high, though it has moved back above it. A close below 4,915.32 would meet this threshold. The benchmark index finished Monday down 0.2%.
S&P 500 sectors were mostly negative on the stock market today. Real estate, materials and energy were the worst laggards. Communication services was the only one rising.
Super Micro Computer fared well as it popped nearly 11%. Stanley Black & Decker and Tractor Supply lagged with drops of nearly 6% each.
Volume was mixed, higher vs. the same time on Friday on the Nasdaq but lower on the New York Stock Exchange.
Small caps also got bit by the bears on the stock market today. The Russell 2000 index reversed lower, and was down 0.9%. The index remains well below its 50-day and 200-day moving averages.
Growth stocks were well off session lows though. The Innovator IBD 50 exchange traded fund briefly reversed higher, but ended the day down nearly 1%. The fund retains a loss for the year of around 15% according to MarketSurge data.
The 10-year Treasury note surged 23 basis points to 4.22% while the 2-year rose 12 basis points to 3.8%.
Bessent Flags Tariff Moves
The biggest hope regarding the Trump administration tariff agenda is that negotiations can prevent the most damaging scenarios from occurring.
And Treasury Secretary Scott Bessent showed that there could yet be signs of light at the end of the tunnel after he flagged some positive developments with key ally Japan.
He took to X to say that "following a very constructive phone discussion with the Government of Japan" Trump has tasked him and U.S. Trade Rep. Jamieson Greer with opening negotiations "to implement the President's vision for the new Golden Age of Global Trade."
Bessent also said that "Japan remains among America's closest allies" and that he is looking foward to the "upcoming productive engagement." The duo will be negotiating with Japanese Prime Minister Shigeru Ishiba and his cabinet.
Under the current Trump tariff plan, goods imported from Japan face a 24% levy.
Bessent also said that more than 50 countries have "responded both openly and positively" to the administration's attempts to "create a fairer, more prosperous system of global trade."
"We look forward to meaningful negotiations with them over the coming weeks," the former hedge fund manager wrote.
Meanwhile, Israeli Prime Minister Benjamin Netanyahu said his nation will eliminate trade barriers with the U.S., and added his country "can serve as a model for other countries who ought to do the same."
Stock Market Today: U.S. Steel Surges
One stock that outperformed on the stock market was U.S. Steel. It ended the day with a gain of 16.2% after President Trump ordered a new review of Nippon Steel's proposal to buy the company.
He has ordered the Committee on Foreign Investment in the United States to determine "whether further action in this matter may be appropriate."
Trump's predecessor Joe Biden blocked the proposed $14.9 billion deal in January.
While the current president had also opposed the deal, his stance changed after a meeting with the Japanese Prime Minister back in February.
U.S. Steel ended the session extended past an old buy point of 41.38 and blasted around 14% clear of its 50-day line.
3:38 p.m. ET
Magnificent Seven: Nvidia Shines But Apple Lags
Stocks on the so-called Magnificent Seven have had a torrid year so far. This is underlined by the fact the Roundhill Magnificent Seven ETF has fallen around 23% this year.
A majority of the individual tech giants that make up the once lofty group were higher heading into the close Monday.
Artificial intelligence play Nvidia was leading the charge as it rallied nearly 4%. Nevertheless, the semiconductor stock remains stuck around 18% below the important 50-day moving average.
Underlining its woes, Nvidia now has an IBD Composite Rating of just 66 out of 99.
Social media play Meta Platforms and e-commerce giant Amazon.com popped. Google-parent Alphabet rose nearly 1%.
However Apple, which has a heavy manufacturing presence in China, fell nearly 4%. It is down nearly 19% so far in April alone.
The computing giant now ranks among the bottom 37% of stocks in terms of price performance over the past 12 months.
It comes after the WSJ reported that Apple is planning to send more iPhones made in India to the U.S. in a bid to reduce the costs of China tariffs on its business. The devices account for about half of Apple's revenue.
Microsoft was also lower, but was down less than 1%
1:53 p.m. ET
Stock Market Today: Tesla Gouged By Bull
It is often a bad sign when the most faithful of fans begins to turn. And Wedbush analyst Dan Ives dealt a blow to Tesla stock as he made a bearish call on the stock Monday.
While he retained an outperform rating on Tesla he slashed his price target to 315 from 550. While he said the firm is less exposed to Trump tariffs than other automakers like General Motors and Ford, he believes this is one part of the equation.
"The bigger worry in our opinion is Tesla's success in China as this key region is the linchpin to the future success of Tesla," Ives said in a note to clients. "The backlash from Trump tariff policies in China and (Tesla Chief Executive Elon) Musk's association will be hard to understate and this will further drive Chinese consumers to buy domestic such as BYD, Nio, Xpeng, and others."
Ives believes the firm has "essentially become a political symbol globally" and that this could be a "very bad thing for the future of this disruptive tech stalwart."
He thinks the company has destroyed at least 10% of its future global customer base, adding that could be "a conservative estimate." He also said the damage has been self-inflicted by Musk.
Even when accounting for the stock moving off session lows, Tesla still lags its major moving averages and has shed about 43% of its value so far this year.
12:35 p.m. ET
President Trump Issues New China Threat
Investors are looking for signs that President Trump will dampen down his tariff threats, but instead he poured more fuel on the fire Monday.
He took to his Truth Social platform to make a new threat against China following its decision last week to levy a 34% charge on U.S. imports.
He complained that the communist country had issued the retaliatory tariffs "on top of their already record setting Tariffs, Non-Monetary Tariffs, Illegal Subsidization of companies, and massive long term Currency Manipulation."
Trump said this came despite the fact he had already warned that any country that took retaliatory action would be hit with additional penalties.
"Therefore, if China does not withdraw its 34% increase above their already long-term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th," he said. "Additionally, all talks with China concerning their requested meetings with us will be terminated! Negotiations with other countries, which have also requested meetings, will begin taking place immediately."
Stock Market Today: Growth 250 Names Shine
It is important for investors to stay engaged with the stock market amid the current carnage. Here are a couple of MarketSurge Growth 250 names showing unusual strength.
Spotify Technology is forming a consolidation with an ideal buy point of 652.63. The relative strength line here has just hit a 52-week high, MarketSurge analysis shows. This represents outperformance vs. the S&P 500. It is below its 50-day line but holding above recent lows.
Overall performance is very strong, with its IBD Composite Rating sitting at 98. The streaming play is among the top 3% of issues in terms of price performance over the past 12 months.
Recent initial public offering Marex was also flexing its muscles, with its RS line also reaching fresh highs. It is also battling to hold above its 50-day moving average.
It got a boost last week after the firm estimated first-quarter revenue of $449.3 million to $464.3 million. That would be an increase of 23% to 27% from the year-ago total of $365.8 million. It also estimated adjusted earnings per share of 88 cents to 93 cents, or an increase of 27.5% to 35% from the 69 cents in the first quarter of 2024.
The stock has formed a new consolidation with an ideal buy point of 40.05. This is an early-stage pattern, a bullish indicator.
11:03 a.m. ET
Ackman Gives Warning Amid Trump Tariff Confusion
Billionaire hedge fund investor Bill Ackman was a key backer of Trump's presidential campaign. However, the Pershing Square chief executive has spoken out against the president's signature economic strategy by issuing a warning over tariffs.
In a post on X, he said the "country is 100% behind the president on fixing a global system of tariffs that has disadvantaged the country." But Ackman warned that by "placing massive and disproportionate tariffs on our friends and our enemies alike" the administration is "in the process of destroying confidence in our country as a trading partner."
Ackman called on Trump and his team to call a 90-day timeout on tariffs so they can negotiate to correct trade imbalances while inducing new investment in the U.S.
"If, on the other hand, on April 9th we launch economic nuclear war on every country in the world, business investment will grind to a halt, consumers will close their wallets and pocket books, and we will severely damage our reputation with the rest of the world that will take years and potentially decades to rehabilitate," he said.
Hopes rose Trump could heed Ackman's advice amid reports Kevin Hassett, director of the National Economic Council, said the president is considering a 90-day pause on tariffs for all countries except China. However gains from this have now evaporated. White House Press Secretary Karoline Leavitt told CNBC the claim was "fake news."
Stocks To Watch: This Equity Could Be 'Dark Horse'
In a stock market currently full of losers, investors will be keen to build a watchlist of potential winners. Citi analyst Paul Lejuez has upgraded Dollar Tree from neutral to a buy and hiked his price target from 76 to 103.
He said the bargain retailer could be a "dark horse winner" adding that the "higher-tariff-across-the-board environment is going to be a positive for (the stock)."
Lejuez believes customers will accept price increases on products up to the $1.50 to $1.75 range from their current level of about $1.25. Additionally, he thinks that the current environment means the stage is set for the firm's "value proposition to thrive."
Dollar Tree is currently lagging a consolidation buy point of 79.80, MarketSurge analysis shows.
However it has bounded back above its 50-day moving average after gaining more than 6% on the stock market today. But it has a poor IBD Composite Rating of 51 out of 99, which reflects subpar performance overall.
Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks.
