A relief rally for stocks failed miserably Tuesday, with massive gains for the major indexes morphing into sizable losses as a key tariff deadline approached. The Dow Jones Industrial Average swung more than 2,200 points while gains for individual stocks such as Apple and Tesla evaporated on the stock market today.
The White House confirmed tariffs on China imports totaling 104% will go into effect at 12:01 a.m. ET on Wednesday, according to CNBC. That sent the Dow crashing. At session highs, blue chips had jumped more than 1,450 points, but the Dow crumbled and finished the day down 350 points, or nearly 1%, off more than 1,800 points from its intraday peak. The Dow actually had tumbled more at one point, and covered a spread of 2,247 points.
The Nasdaq did the same. The tech-heavy index eked out a narrow win Monday then kicked into gear at Tuesday's open on its way to a massive intraday gain of 4.6%. But then it plunged harder than the other indexes, and lost 2.2% at the close.
Ditto for the S&P 500, which deteriorated after initial sharp gains. The benchmark index retreated 1.6% by the session's end, and finished under the 5,000 level for the first time in a year. All three major indexes remain well below their 200-day moving averages.
Stock Market Today: Small Caps Take A Hit
Small caps took the hardest blow, with the Russell 2000 tumbling by 3.5%.
Volume was considerably lower on the Nasdaq and the New York Stock Exchange compared with the same time Monday. On both exchanges, falling stocks overtook rising issues by roughly 3-to-1.
The benchmark 10-year Treasury bond yield added nine basis points to 4.25% Tuesday midday. And oil prices tumbled to around $58.55 a barrel.
In economic news, the National Federation of Independent Business' small business optimism index dipped to 97.4 in March vs. the 98.9 expected. February's reading came in at 100.7.
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These Big Names Switch Into Reverse
Dow Jones component Nvidia had climbed nearly 7% on the stock market today following Monday's 3.5% increase, but that too faded as the close neared. The artificial intelligence giant lost 1.4%.
In the process, Nvidia stock fell back below the 100 price level. The stock has been weak as seen in its IBD Relative Strength Rating of 29.
A 9% surge higher by Palantir Technologies' disintegrated into a 0.7% loss. Palantir had posted a 5.2% jump Monday. Shares remain below their 50-day line.
Dow Jones component Apple gave back a 4% increase as the Magnificent Seven name reversed and dropped another 5%, extending its losing streak to four days. The iPhone maker's stock has seen significant damage after losing roughly 31% so far this year.
Tesla also weakened in afternoon trading and turned a 6% gain into a loss of nearly 5%, also down for the fourth day in a row. The electric vehicle giant has shed around 45% year-to-date.
3:36 p.m. ET
Stock Market Today: Two IBD 50 Losers
IBD 50 name Atour Lifestyle Holdings plunged nearly 7% and undercut its 200-day line on the stock market today.
Also on the losing end was Amer Sports with a drop of more than 7%. Shares pulled back to their 200-day line.
2:08 p.m. ET
Trump Threatens More China Tariffs
On Monday, President Donald Trump posted a response to China's latest tariff threat on his Truth Social account:
"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.
On Tuesday, Treasury Secretary Scott Bessent said in a CNBC interview: "I think it was a big mistake, this Chinese escalation, because they're playing with a pair of twos." He added that other countries seem more willing to negotiate. Bessent's comments come in response to China's early morning statement that it would "fight to the end" against Trump's tariffs.
In stocks, recent new offering and IBD 50 name CoreWeave plummeted by double digits after rising 4.3% Monday. Shares started trading March 28 with an initial public offering price of $40.
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12:31 p.m. ET
Cruise Stocks Climb, Broadcom Powers Up
Cruise line stocks were among names that acted strongly.
Among the stocks that sailed higher was Norwegian Cruise Line. Late Monday, the company announced deals including one with Cordelia Cruises, a cruise operator based in India. Cordelia will charter two Norwegian Cruise Line vessels.
Norwegian rival Carnival punched higher while Royal Caribbean notched a gain as well.
Broadcom climbed following news late Monday it authorized a stock-buyback program for up to $10 billion of shares through the end of the year.
These IBD 50 Names Move Higher
Meanwhile, IBD 50 names Alignment Healthcare and Rhythm Pharmaceuticals jumped Tuesday. Further, some health insurer stocks rallied Tuesday following news the Centers for Medicare & Medicaid Services raised Medicare Advantage payments significantly late Monday.
Alignment led the IBD 50. Shares reached a level not seen since November 2021. Its Alignment Health Plan offers a variety of Medicare Advantage Plans.
Also showing sizable gains was Rhythm. The jump follows Monday's 17.1 % lift amid the general market sell-off.
Rhythm's relative strength line hit a 52-week high. Shares are in what would normally be a long consolidation with a 68.58 buy point. The biotech has had several recent price target hikes including Canaccord Genuity's lift to 92 from 81 Tuesday.
Investors should be cautious of breakouts and new buys during the current market correction and should follow risk management rules, including cutting losses at 7%.
10:50 p.m. ET
Stock Market Today: Health Insurers Get A Boost
Health insurer Humana soared nearly 11% in heavy volume on the Medicare Advantage news. Humana stock reclaimed its 50-day moving average but remains below its 200-day line.
UnitedHealth Group surged and regained its 200-day line on the stock market today. Its relative strength line reached a 52-week high as seen by the blue dot on its MarketSurge chart.
Aetna parent CVS Health popped in heavy trading. Shares are back above the 67.34 cup-with-handle buy point after triggering the 7% sell rule Monday.
Follow Kimberley Koenig for more stock market news on X, the platform formerly known as Twitter, @IBD_KKoenig.
