US stocks ended mixed on Tuesday as revived tariff threats from President Donald Trump and concerns over stricter China restrictions affected market sentiment. Additionally, new economic data pointed to growing fears about future growth.
Consumer Confidence Falls Sharply
Consumer confidence plummeted in February, marking its largest monthly decline in nearly four years. This drop was largely driven by a sharp increase in 12-month inflation expectations and growing recession concerns. These factors weighed on market optimism and contributed to the day’s volatility.
Nasdaq and S&P 500 Struggle, Dow Jones Moves Higher
The tech-heavy Nasdaq Composite (^IXIC) experienced a significant drop, falling by about 1.3%. Shares of major tech companies, including Nvidia (NVDA) and Tesla (TSLA), were major contributors to the decline. Meanwhile, the broader S&P 500 (^GSPC) slipped by roughly 0.4%. In contrast, the Dow Jones Industrial Average (^DJI) reversed earlier losses, closing up about 0.4%.
Bitcoin and Crypto Stocks Struggle
In the cryptocurrency market, Bitcoin (BTC-USD) saw a sharp decline, falling below $90,000 for the first time since November. Bitcoin dropped to as low as $86,000 early in the day before stabilizing around $88,000 by the market close. Ether (ETH-USD), the second-largest cryptocurrency, also faced a significant drop, falling around 6% to just above $2,500.
Crypto-related stocks, including Coinbase (COIN) and MicroStrategy (MSTR), also faced downward pressure throughout the day.
Tariff Threats and China Curbs Add Uncertainty
President Trump’s recent comments about continuing tariffs on Mexico and Canada next week have unsettled markets. His signals that the trade overhaul isn’t over have raised concerns about the potential negative impact on economic growth.
In addition, Trump’s administration is reportedly considering stricter chip curbs on China, which could further harm market confidence. Nvidia (NVDA), a major player in AI chips, was in focus ahead of its earnings report, with investors wary of the impact of tariffs and export controls.
Tesla Faces European Sales Struggles
Tesla (TSLA) also faced significant challenges, with its stock falling more than 8% after the company reported a 45% drop in sales in Europe during January. These struggles add to concerns over Tesla’s future performance amid a more competitive electric vehicle market.
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