U.S.-Canada tariff squabbles spurred whipsaw action in the stock market Tuesday, taking the major indexes on a roller-coaster ride and ultimately leaving them on the losing end at the close of trading. Somehow, though, Big Tech names Nvidia, Tesla and Palantir Technologies ultimately managed to post solid gains on the stock market today.
President Donald Trump had said the U.S. will double its 25% tariffs on Canadian steel and aluminum to 50%, in reaction to Canada's retaliatory tariffs last week. Trump also announced he would increase tariffs on autos coming into the U.S. on April 2. That sent the markets reeling.
Later in the day, however, it was reported that Ontario Premier Doug Ford temporarily suspended plans for a 25% surcharge on electricity exported to the U.S. as Commerce Secretary Howard Lutnick apparently agreed to trade talks. That helped push the S&P 500 and Nasdaq into the black and cut losses for the Dow Jones Industrial Average.
The positive energy ultimately dissipated as the Dow finished the day down 1.1%, or 478 points. Tuesday's move pushed the blue-chip index firmly below its 200-day moving average in the wake of its 890-point loss Monday. The Dow had finished right at the 200-day line Monday.
Stocks on the S&P 500 wavered but ended the day down 0.8%, keeping it solidly below the 200-day line. The benchmark index ventured into positive ground for a time in late action, but ultimately succumbed.
Meanwhile, the Nasdaq composite continued to show the most whipsaw action. It started down, then reversed to post a gain. It ultimately added to Monday's 4% drop with a loss of 0.2%. Similar to the other major indexes, it is also below its 200-day line.
Small Caps Turn Higher; Volume Mixed
Small caps, however, turned positive in the final hours, as the Russell 2000 gained 0.4%. The Russell remains below its 200-day moving average but hovers just above the 2,000 level.
Volume was higher on the Nasdaq and lower on the New York Stock Exchange vs. the same time Monday.
On the Nasdaq exchange, declining issues narrowly outnumbered advancers, while losers came in ahead of gainers roughly 3-to-2 on the New York Stock Exchange.
Crude oil bumped up to $66.51 a barrel Tuesday. Meanwhile, bitcoin rebounded to move near the $83,000 level.
Nvidia, Palantir And Tesla Regain Ground
Tesla staged a rebound Tuesday after Monday's 15.4% plunge, with shares up nearly 4% at the close. In a show of support, Trump said on his Truth Social platform he will buy a Tesla vehicle. Tesla stock has lost around 43% so far this year.
Dow Jones component Nvidia forged ahead by nearly 2% after Monday's 5.1% drop.
Nvidia and Tesla remain far below their 200-day moving averages with both showing large losses this year so far.
Lastly, Palantir Technologies moved up more than 2% after its 10% plunge Monday.
3:32 p.m. ET
Stock Market Today: Travel Stocks Fall With Airline's Outlook
A plunge in Delta Air Lines stock prompted other travel firms to drop Tuesday.
Delta Air Lines dropped roughly 7% in heavy volume after the carrier lowered its first-quarter profit and revenue growth forecast. The stock has a mediocre 55 IBD Relative Strength Rating.
Online travel booking stock Expedia tumbled more than 7% in heavy trading, falling further below its 50-day line and heading toward its 200-day line. Booking lost more than 2% and tested its 200-day line.
Meanwhile Airbnb sank around 5% and is on pace for four straight weeks of losses.
But not all travel stocks suffered. IBD 50 China-based Atour Lifestyle Holdings bounced roughly 5% higher after choppy action following a breakout from a consolidation with a 29.690 buy point that faded.
1:59 p.m. ET
Payment Name Soars As Wireless Names Sink
Paymentus Holdings rocketed higher in huge volume, after the electronic bill payment technology provider crushed fourth-quarter sales estimates with a modest beat on earnings. Its profit grew 44% while sales growth ramped up to 56% from 25% four quarters ago. Paymentus reclaimed its 200-day and 50-day lines on the stock market today.
Dow Jones component Verizon Communications skidded after a company executive warned its subscriber additions could be "soft" due to competition. He added the wireless carrier is up against a tough year-on-year comparison.
Verizon gave back a near-6% gain from the 44.73 buy point of a double-bottom base breakout. Shares are now well below the buy point. Verizon was the biggest loser on the Dow Jones Tuesday.
Rival stock AT&T toppled while carrier T-Mobile US slid in sympathy with Verizon.
12:21 p.m. ET
Sporting Goods Name Loses
Dick's Sporting Goods sank after the retailer topped fiscal fourth-quarter profit and revenue estimates but gave a fiscal 2025 outlook that was below projections.
IBD 50 name Root showed resiliency and bolted higher, more than compensating for its 4.5% loss Monday. The auto insurance stock is extended from a consolidation with a 118.15 buy point and had already hit the 20% profit-taking zone. Root was the biggest gainer on the IBD 50 Tuesday.
10:47 a.m. ET
Oracle Pulls Back, Southwest Soars
Oracle slid after the company late Monday reported weaker-than-expected fiscal third-quarter earnings and sales. The database software stock is below its 200-day line and has lost around 15% so far this year.
Meanwhile, Southwest Airlines popped on news it will start charging a fee to check luggage. The airline will also offer basic economy tickets and reintroduce expiration dates to flight credits after halting the policy during the pandemic. Southwest stock reclaimed its 200-day line and tested its 50-day line on the stock market today.
Asana crashed in huge volume after the software maker reported fiscal fourth-quarter earnings and sales that slightly topped estimates. But investors focused on its fiscal 2026 revenue outlook that came in well below expectations. In addition, Asana's cofounder and chief executive, Dustin Moskovitz, plans to retire.
Viking Holdings gave up ground after the river cruise operator's fourth-quarter results beat profit forecasts with revenue edging slightly above views.
In economic news, the Labor Department's Job Openings and Labor Turnover Survey, or JOLTS report, for January showed 7.74 million job openings, which topped the 7.5 million expected and December's revised 7.508 million openings.
Follow Kimberley Koenig for more stock market news on X, the platform formerly known as Twitter, @IBD_KKoenig.
