The Club PUBlication 04/07/2025

S&P 500, Nasdaq facing worst quarter since 2022
​Investors wary amid barrage of new tariffs.
By AARON GREGG and JEFF STEIN The Washington Post​

​The S&P 500 and Nasdaq indexes are on track to clock their worst quarter since spring 2022 as the Trump administration's evolving trade policies rattle Wall Street.

Investors have struggled to find a foothold amid a barrage of new tariffs, which have been subject to repeated announcements and reversals since Inauguration Day. In addition, worrisome new economic data pointing to a consumer spending slowdown has reignited recession fears.

The stock market downturn has entirely erased the short-lived rally that followed Trump's November election win, when investors pinned their hopes on pro-business policies such as tax cuts and deregulation. As of midday Monday, the S&P 500 was down by more than 5% since the start of the year, while the tech-heavy Nasdaq index is off more than 11% for the year. The Dow Jones industrial average, which includes a narrower set of stocks, is off 2% since the start of the year.
The sell-off comes amid news that Trump is now pushing for more sweeping tariffs on Wednesday, which he has billed "Liberation Day" for the U.S. economy.

Top Trump aides had previously said they would impose new tariffs on "the Dirty 15," or the 15% of nations determined by the administration to have the worst trade practices. That proposal would target a huge swath of U.S. trade but could pave the way for individual deals with countries and allow specific tariffs to be gradually reduced.

In recent days, however, Trump has pressed advisers to return to his 2024 presidential campaign plan to impose a single, universal rate on all U.S. trading partners as high as 20%.

Without providing specifics, White House aide Peter Navarro said Sunday that Trump's tariffs would raise $600 billion per year, or $6 trillion over 10 years, which appeared to reflect the universal tariff plan.

And on Sunday night, Trump gave his first public indication that imposing a single tariff on imports from every country remains on the table.

As the tariff threat heats up, analysts say the stock market will hit significant volatility, with much depending on what happens Wednesday.

"The April 2 deadline could be a major directional catalyst for most global markets, in either direction," wrote Larry Tentarelli, chief technical strategist for the Blue Chip Daily Trend Report, in a note to investors.

White House officials are studying a 1977 law that gives the president emergency powers as a way to enact 20% tariffs on all imports, according to three people familiar with the matter who spoke on the condition of anonymity to reflect private deliberations.

The White House has previously announced tariffs on the auto sector and on Sunday reiterated interest in tariffs on lumber and pharmaceuticals.

Wedbush Securities analyst Dan Ives said he believes that the auto tariffs, in particular, will "send the auto industry into upside-down mode" as the automakers struggle to reconcile their global supply chains with steep new import duties,
​upping the average car price by $5,000 to $10,000.