Tariffs Weigh Heavily on S&P 500; Okta Defies Market Trends

Market turbulence continues as tariffs bring jitters among investors. Today, the S&P fell alongside major indices due to new tariffs on Canada and Mexico, affecting stocks like Amazon and Apple, while Okta rises post impressive earnings.

Date: 04-03-2025

AI Rating: 4

Tariff Impact: The imposition of +25% tariffs on Canada and Mexico has caused significant market volatility, reflected in the decline of major indices like the S&P 500, which fell by -1.76%. This could lead to a broader market concern regarding the potential impact of tariffs on company profit margins and consumer spending.

Stock Performance: Notably, Amazon (AMZN) shares dropped -3.4%, as the company anticipates increased prices due to tariffs. Other major companies such as Apple (AAPL) and Microsoft (MSFT) saw declines of -1.5% and -2.1%, respectively, indicating a negative sentiment in tech stocks as a result of the tariff news. Nvidia (NVDA) faced the most significant hit with an -8.5% drop, highlighting investor fears regarding its future profitability under the new tariff regime.

Economic Indicators: The Atlanta Fed has revised its Q1 GDP estimate to -2.8%, a downward adjustment from a prior projection of -1.5%. This dip suggests concerns about economic growth, prompting investors to reassess equity positions. Negative GDP growth could further impact profit margins and earnings forecasts across various sectors.

Manufacturing and Construction Data: The mixed manufacturing data, while slightly below expectations, shows the PMI at 52.7, still indicating growth. However, a contraction in construction spending (-0.2% month over month) points towards caution in future economic activity. These signals could lead to volatility in stocks tied to capital expenditures.

Winning Performance: On a previously positive note, Okta (OKTA) reported earnings of 78 cents per share, beating expectations and resulting in a 13% increase in its stock price. This performance represents a contrasting dynamic amid the broader negative trends impacting the market, showing that not all companies are equally affected by macroeconomic factors.

Stocks: AMZN AAPL MSFT NVDA OKTA