Financial Markets                      03/25 15:27

   

   NEW YORK (AP) -- Wall Street edged higher in a quiet Tuesday after roaring 
the day before on hopes that President Donald Trump's tariffs may not be as 
sweeping as earlier feared.

   The S&P 500 added 0.2% after jumping 1.8% Monday to one of its best days of 
the last year. The Dow Jones Industrial Average inched up by 4 points, or less 
than 0.1%, and the Nasdaq composite rose 0.5%.

   U.S. stocks have recovered a chunk of their losses since falling 10% below 
their all-time high earlier this month, for their first "correction" since 
2023. The S&P 500 is now down 6% from its record, and that drop has left the 
market looking less expensive than before, which had been a major criticism 
following its euphoric rise in earlier years.

   But strategists along Wall Street warn that more sharp swings are still 
likely on the way with an April 2 deadline looming. That's what Trump has 
called "Liberation Day," when he will begin tariffs on trading partners that he 
says will roughly equal what he sees as the burden each of them puts on the 
United States. Monday's spurt for Wall Street came on hopes that Trump's 
"reciprocal" tariffs may be more targeted than had earlier been feared.

   "We think markets are underplaying the risk of a tariff shock in early 
April," according to Ajay Rajadhyaksha, global head of research at Barclays. He 
points not only to traders' expectations for upcoming volatility in the stock 
market but also to the values of the Mexican peso and Canadian dollar, which 
haven't weakened substantially from the last postponement of tariffs.

   Even if Trump's tariffs do end up being less painful for the global economy 
than feared, all the dizzying talk about them has already soured confidence 
among U.S. households and businesses. The fear is that could lead them to cut 
back on their spending and freeze the economy.

   A report on Tuesday showed that pessimism among U.S. households is only 
worsening. The Conference Board's measure of consumer confidence fell by more 
than expected, mostly because of a tumble for expectations about upcoming 
conditions in the short term. That dropped to its lowest level in 12 years and 
is sitting "well below the threshold of 80 that usually signals a recession 
ahead."

   Like other recent surveys, the data showed U.S. households are much more 
concerned about where the economy is heading than where it is currently. So 
far, actual economic activity and the job market seem to be holding up despite 
the worsening moods of U.S. companies and consumers.

   On Wall Street, Trump Media & Technology Group climbed 8.9% after the 
company behind the president's Truth Social platform said it had reached an 
agreement with Crypto.com to offer a suite of "America-First" investment funds.

   The exchange-traded funds will hold bitcoin and other digital assets, along 
with what TMTG called "securities with a Made in America focus spanning diverse 
industries such as energy." Crypto.com will support the backend technology, 
provide custody and supply the cryptocurrencies for the ETFs, which will 
operate under TMTG's Truth.Fi brand.

   Tesla rose 3.4% after drifting between modest gains and losses following 
more grim sales figures from Europe. Its stock nevertheless remains down nearly 
29% for 2025 so far.

   European sales of Tesla's electric vehicles dropped by nearly half during 
the first two months of the year, compared with a year earlier, even as the 
overall market for battery-powered cars grew, according to the European 
Automobile Manufacturers Association.

   In addition to an aging model line, drops in sales may be due in part to CEO 
Elon Musk's endorsement of Germany's far-right party in last month's national 
election, his embrace of fringe political movements and a gesture during a 
Trump event in January that many saw as a Nazi salute. Tesla is also facing 
increasing competition from Chinese carmakers such as BYD.

   Homebuilder KB Home dropped 5.2% after reporting weaker profit and revenue 
for the latest quarter than analysts expected. Already mired in a slump, 
homebuilders may face potentially rising costs due to tariffs, which they will 
have to pass on to buyers. A report on Tuesday morning said U.S. sales of new 
homes last month were slightly weaker than economists expected.

   All told, the S&P 500 rose 9.08 points to 5,776.65. The Dow Jones Industrial 
Average rose 4.18 to 42,587.50, and the Nasdaq composite climbed 83.26 to 
18,271.86.

   In stock markets abroad, indexes rose in much of Europe following a mixed 
finish in Asia.

   In the bond market, Treasury yields eased. The yield on the 10-year Treasury 
fell to 4.31% from 4.34% late Monday.

   ___

   AP Business Writers Matt Ott and Elaine Kurtenbach contributed.

   ---------

   itemid:56a3f6e7e8e7fd533884db5d47cbb991