Traders work on the floor at the New York Stock Exchange in New York City, U.S., March 24, 2025.
Jeenah Moon | Reuters
U.S. stocks edged higher Tuesday as investors tried to build on the previous session’s gains, which were largely sparked by hopes of U.S. tariffs being narrower in scope.
The Dow Jones Industrial Average added 56 points, or 0.1%. The S&P 500 added 0.1%, while the Nasdaq Composite gained 0.3%.
Investors largely looked past the March consumer confidence data released Tuesday, which reflected a significant drop in U.S. consumers’ near-term outlook on income, business, and job conditions.
The Conference Board’s monthly confidence index fell to 92.9, below a Dow Jones forecast of 93.5. The measure for future expectations dropped to 65.2, the lowest reading in 12 years and well below the 80 level considered to be a signal for a recession ahead.
“Sentiment continues to wane among investors, consumers and businesses as economic concerns and economic policy uncertainty takes its toll,” said Bret Kenwell, U.S. investment analyst at eToro. “Until there’s more certainty on the tariff and macro front, sentiment and confidence remain vulnerable.”
Kenwell pointed out that this week’s GDP and PCE reports, the latter of which serves as the Federal Reserve’s preferred inflation gauge, as well as next week’s jobs report, may give further clarity on the state of the economy.
Wall Street has been on edge recently over a potential uptick in inflation and slowing economic growth as it awaits President Donald Trump’s reciprocal tariffs expected on April 2. Investors got a reprieve Monday on news that on reports that the White House may narrow the scope of tariffs going into effect.
Trump later told the press that he “may give a lot of countries breaks” on reciprocal tariffs. He added that duties on certain sectors, such as pharmaceuticals and autos, would still be coming in the “near future.”
The news sent stocks sharply higher on Monday, with the Dow soaring more than 600 points. It’s been a rocky past month for stocks. At one point earlier this month, the S&P 500 closed in correction territory.
Stocks making the biggest moves midday Tuesday
KB Home signs are displayed at a new KB Home community featuring solar panels on March 24, 2025 in South El Monte, California.
Mario Tama | Getty Images News | Getty Images
Check out the companies making headlines in midday trading.
KB Home — Shares of the homebuilder fell more than 4% after the company posted a top- and bottom-line miss in the first quarter. KB Home earned $1.49 per share on revenue of $1.39 billion. Analysts polled by LSEG were looking for earnings of $1.58 per share and revenue of $1.5 billion. The company also cut its revenue guidance for fiscal 2025.
Cloudflare — Shares of the network security firm jumped more than 2% on the back of Bank of America’s double upgrade to buy from underperform. The bank said Cloudflare’s fundamentals are improving and the stock is an underappreciated play on artificial intelligence.
Oklo — The nuclear technology company tumbled 9% after reporting a wider annual loss compared with a year prior. Oklo also said it expects to incur “significant expenses and continuing financial losses.”
The full list can be found here.
— Hakyung Kim
Cathie Wood stands by Tesla, predicts stock could soar nearly 10 times current price
In an interview with Bloomberg TV, Ark Invest CEO and CIO Cathie Wood said that she remained optimistic on shares of Tesla.
In five years’ time, Wood believes that Tesla stock could trade at $2,600 per share. That’s an 834% upside from the stock’s Monday closing price of $278.39.
While Tesla shares added 12% on Monday — marking their best daily performance this year — the stock is still down more than 44% from its December all-time high.
TSLA 1Y chart
But Wood predicted that Tesla’s robo taxis will drive most of its share growth in the next five years. Investors have grown more afraid that Chinese competitor BYD could place mounting pressures on Tesla, especially in the Chinese market, a fear that Wood dismissed.
“If you look at metrics like range and power for a given price, Tesla is very competitive, if not the most competitive, depending on the model of car,” she said. “Tesla and BYD are both in the lead from an EV point of view alone. If you are layering in robotaxi, of course BYD is not seizing the moment there, at least not yet.”
— Lisa Kailai Han
Consumer confidence for March misses the mark
The Conference Board said its consumer confidence index fell to 92.9 in March, slightly below a Dow Jones estimate of 93.5.
What’s more, the expectations index, which gauges consumers’ short-term outlook on income, business and the labor market, tumbled to its lowest level in 12 years.
“Consumer confidence declined for a fourth consecutive month in March, falling below the relatively narrow range that had prevailed since 2022,” said Stephanie Guichard, senior economist, global Indicators at The Conference Board.
“Consumers’ expectations were especially gloomy, with pessimism about future business conditions deepening and confidence about future employment prospects falling to a 12- year low. Meanwhile, consumers’ optimism about future income–which had held up quite strongly in the past few months– largely vanished, suggesting worries about the economy and labor market have started to spread into consumers’ assessments of their personal situations,” she said.
— Fred Imbert
Home prices show a gain in January
A ‘For Sale’ sign is posted in front of a home for sale on March 5, 2025 in Los Angeles, California.
Mario Tama | Getty Images
Sale prices for homes in the biggest U.S. cities increased at a slightly faster than expected pace in January, according to the latest S&P CoreLogic Case-Shiller measurement.
For the measure’s 20-City Composite Index, prices accelerated at a 4.7% annual pace, up from 4.5% in December and 0.1 percentage point better than the Dow Jones consensus forecast.
However, prices for the 20-city index rose just 0.1% on a monthly basis. On a national basis, the index showed a 4.1% annual increase in January, nudging up 0.1 percentage point on a monthly basis.
—Jeff Cox
Alibaba CEO says company will begin hiring again, warns of potential AI bubble in the U.S.
Alibaba said it has plans to begin hiring again, shortly after its CEO came away from Chinese President Xi Jinping’s closed-door meeting with entrepreneurs earlier this month more confident in reinvesting in the company as well as in Beijing’s approach to tech development.
Chairman of Alibaba Group Joe Tsai said Tuesday at HSBC’s Global Investment Summit in Hong Kong that the company will “start to reboot and rehire” following 12 quarters of declining headcount, Reuters reported.
He also expressed concerns that big artificial intelligence investment announcements in the U.S. could be the start of an AI bubble in the country.
Earlier this month, Tsai said the Xi meeting “gave us the confidence to put our earnings back into CAPEX and investments, also hire people.” Alibaba’s AI strategy has remained robust, as the company announced in February a plan to invest $52 billion in cloud computing and AI infrastructure over the next three years.
— Pia Singh
Stocks open higher Tuesday
Corvex Management’s Keith Meister joins Illumina board, WSJ says
Keith Meister, founder and chief investment officer at Corvex Management LP.
Brendan McDermid | Reuters
Activist investor, hedge fund manager and Corvex Management chief investment officer Keith Meister has joined the board of directors at Illumina, the Wall Street Journal reported. Corvex, which first invested in the DNA sequencing and array-based life sciences company in 2023, today holds about a 2.5% stake in the San Diego-based company today.
Illumina, down 8% in the past month and lower by 35% in the past three months, rose a little more than 1% in early trading Tuesday.
Former Food and Drug Administration chairman Scott Gottlieb, a current member of Illumina’s board, will become chairman, the Journal said.
Both moves are effective Friday, according to the Journal.
— Scott Schnipper
See the stocks making moves before the bell
Check out the stocks making big moves in the premarket:
- UniFirst – The stock tumbled more than 10% after Cintas terminated discussions to acquire the workwear provider in a deal that would have been worth $275 per share in cash. In a statement, Cintas CEO Todd Schneider said, “While we continue to believe in the merits of a transaction, we were unable to have substantive engagement with UniFirst regarding key transaction terms. We do not believe further discussions are warranted at this time.”
- KB Home – The homebuilder stock pulled back 8% after its first-quarter results missed Wall Street’s expectations. KB Home posted earnings of $1.49 per share on $1.39 billion in revenue, while analysts surveyed by LSEG had penciled in $1.58 per share and $1.5 billion in revenue. KB Home also cut its fiscal 2025 revenue outlook.
- Trump Media – Shares gained 9% after the Truth Social parent announced a deal with Crypto.com to launch a series of exchange-traded funds and other related products. Trump Media said that it plans to launch the funds later this year.
Read here for the full list.
— Sean Conlon
Trump Media shares jump on Crypto.com agreement
Omar Marques | Lightrocket | Getty Images
Shares of Truth Social parent Trump Media popped roughly 8.8% in premarket trading after the president’s social media company announced an agreement with Crypto.com to launch exchange-traded funds and related products.
The ETFs and exchange-traded products will have a “Made in America” focus and will launch later this year, subject to regulatory approval, according to the Trump Media press release on Monday. Before these gains, the stock was down 38% for the year as of Monday’s close.
Read more on the announcement here.
— Pia Singh, MacKenzie Sigalos
Atlanta Fed’s Bostic reduces outlook to one rate cut this year
Atlanta Federal Reserve President Raphael Bostic said he expects sticky inflation to keep the central bank from lowering interest rates more than once this year.
The policymaker told Bloomberg News that he switched his projection for rate cuts this year at last week’s meeting to one quarter percentage point cut from two.
“I was one of those at two. I moved to one mainly because I think we’re going to see inflation be very bumpy and not move dramatically and in a clear way to the 2% target,” he said. “Because that’s being pushed back, I think the appropriate path of policy is going to have to be pushed back in getting us to that neutral level.”
Bostic does not vote this year on the rate-setting Federal Open Market Committee and will next vote in 2027. He was one of four participants who expect just one cut this year, with four others seeing no cuts. However, the other 11 participants still expect two reductions.
—Jeff Cox
Bank of America upgrades Alcon
Medical device and pharmaceutical company Alcon “is on the cusp of an earnings upgrade cycle driven by product launches,” according to Bank of America.
BofA upgraded Alcon stock to buy from neutral on Tuesday, and raised its price target to $108 per share from $92. The firm’s forecast implies about 17% upside from Monday’s $92.35 close.
Alcon stock in 2025.
“Meanwhile, valuation looks undemanding, with the shares trading below their long-term average,” analyst Julien Ouaddour said. “Several catalysts lie ahead, especially with product launches across the year.”
— Brian Evans
Hong Kong’s Hang Seng index drops more than 2% as investors assess Trump tariff threats
Asia-Pacific markets traded mixed Tuesday as investors assessed U.S. President Donald Trump’s tariff threats.
Hong Kong’s Hang Seng Index ended the day 2.35% lower at 23,344.25, while the Hang Seng Tech index plunged 3.82% to 5,517.52.
Meanwhile, mainland China’s CSI 300 closed flat at 3,932.30.
India’s benchmark Nifty 50 rose 0.32% while the broader BSE Sensex traded flat as at 1.45 p.m. local time.
Japan’s benchmark Nikkei 225 ended the day 0.46% higher at 37,780.54, while the broader Topix index increased 0.24% to 2,797.52.
Over in South Korea, the Kospi index fell 0.62% to 2,615.81 while the small-cap Kosdaq declined 1.24% to 711.26.
Over in Australia, the S&P/ASX 200 ended the day flat at 7,942.50.
— Amala Balakrishner
Retail trading platform eToro files for an initial public offering
Omar Marques | Sopa Images | Lightrocket | Getty Images
Trading platform eToro submitted a regulatory filing to the Securities and Exchange Commission for an initial public offering.
The company expects to list its Class A common shares on the Nasdaq Global Select Market under the ticker “ETOR.”
Underwriters of the IPO include Goldman Sachs, Jefferies, UBS Investment bank and Citigroup.
The company was founded in 2007, and users can trade a range of asset classes, including stocks, exchange-traded funds and options.
—Darla Mercado
El-Erian says fast money’s de-leveraging is behind us
President of Queens’ College of Cambridge University Mohamed El-Erian speaks during a panel discussion at the headquarters of the International Monetary Fund during the Annual Meetings of the IMF and World Bank in Washington, D.C., on Oct. 13, 2022.
James Lawler Duggan | Reuters
Mohamed El-Erian, Allianz chief economic advisor, said part of the driver for the recent market sell-off could be behind us.
“You’ve seen quite a de-leveraging among fast money. And you’ve also seen a shift of institutional to Europe. I think most of the de-leveraging is behind us. The shift to Europe isn’t quite behind us, but the technical certainly are not as bad as they were a few weeks ago,” El-Erian said on Monday.
The widely followed strategist and economist said there will be one rate cut this year at best as inflation proves to be stubborn.
“I wouldn’t surprise me if we get no cuts this year unless we go into recession,” he said. Recent data are “all consistently pointing to inflation going up. So I think the Fed should take it more seriously.”
— Yun Li
Stocks making the biggest moves after hours Monday
Check out the companies making headlines in extended trading.
KB Home — The homebuilder tumbled nearly 9% after missing both top-and bottom-line estimates in the first quarter. KB Home posted earnings of $1.49 per share on revenues of $1.39 billion. Analysts polled by LSEG were looking for earnings of $1.58 per share and $1.5 billion in revenues. The company also cut its revenue guidance for the 2025 fiscal year.
UniFirst – Shares of the workwear provider dipped 10%. Competitor Cintas terminated talks to take over UniFirst in a deal valued at $275 per share in cash. “While we continue to believe in the merits of a transaction, we were unable to have substantive engagement with UniFirst regarding key transaction terms,” Cintas CEO Todd Schneider said in a statement. “We do not believe further discussions are warranted at this time.”
American Electric Power — The Columbus, Ohio-based utility dropped 2% after planning a $2 billion secondary sale of common stock through Citigroup and Barclays.
— Hakyung Kim