Tariff Fears Simmer as Stocks End Five-Day Winning Streak

U.S. stocks slipped at the opening bell Tuesday, poised to end a five-day winning streak, as investor sentiment soured in response to growing economic uncertainty and unsettling comments from the White House about tariffs. A number of major companies added to the nervous tone by signaling increased caution about the months ahead.

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The S&P 500 Index dropped 0.3%, while the Nasdaq 100 slipped 0.4% shortly after markets opened in New York. The Dow Jones Industrial Average edged up by 0.1%, showing some resilience, whereas the small-cap Russell 2000 fell 0.3%. Market volatility remained elevated, with the Cboe Volatility Index (VIX) hovering around 25 — a level that reflects heightened investor anxiety.

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Amazon.com Inc. was a key drag on the broader market after coming under fire from the White House. Press Secretary Karoline Leavitt labeled Amazon’s move to display the effects of tariffs on product pricing as “hostile” and politically motivated. The retail giant’s stock declined, becoming the largest contributor to the S&P 500’s losses in early trading.

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Several companies saw their shares move significantly after releasing new financial updates or strategic changes, many of which pointed to growing concerns about the business environment. General Motors Co., for example, saw its stock fall after it withdrew its earnings forecast for 2025 and paused a $4 billion share repurchase plan. The company cited the uncertain outlook surrounding U.S. tariffs as the primary reason for its more cautious stance.

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JetBlue Airways Corp. also added to the gloom, becoming the latest airline to withdraw its forward guidance amid worries about macroeconomic conditions. Meanwhile, PayPal Holdings Inc. reported a strong first-quarter performance, exceeding expectations, but opted to keep its full-year forecast unchanged. The company explained that unpredictable global economic conditions made it difficult to offer more optimistic projections, despite recent momentum.

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Adding to the wave of corporate belt-tightening, United Parcel Service Inc. (UPS) announced plans to cut 20,000 jobs this year and close numerous facilities as part of an effort to streamline operations amid an uncertain trade backdrop.

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“Global trade uncertainty remains a central driver of market unease,” said Ivan Feinseth, chief investment officer at Tigress Financial Partners. “U.S. markets are likely to stay volatile until we see more clarity on trade agreements. Investors are holding out hope that one or two breakthrough deals could help create a framework for future negotiations.”

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In the background of these corporate decisions and market movements is the ongoing tension over tariffs and trade policy. The Trump administration is reportedly working to soften the impact of its auto tariffs, with the auto industry lobbying for exemptions on some foreign-made parts used in vehicles assembled within the U.S. The aim is to reduce the burden on domestic car and truck production, which has been rattled by the new trade measures.

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In a related development, Treasury Secretary Scott Bessent said during a White House press briefing that the U.S. is “very close” to finalizing a trade deal with India — a potential bright spot in a landscape otherwise marked by tariff battles and international economic uncertainty.

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These mixed signals — from companies scaling back due to trade fears to the government expressing optimism over potential deals — have left investors in a wait-and-see mode. While some on Wall Street remain hopeful that diplomatic breakthroughs will calm markets, many are bracing for continued turbulence as long as policy direction remains unclear.

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Overall, Tuesday’s market action reflected the fragility of investor confidence in the face of rising economic and policy risks. The lack of forward guidance from big-name companies and the political tone surrounding trade policy contributed to a cautious mood. Until firms and investors get more concrete signs of economic stabilization or significant progress on trade, equities may remain under pressure, and volatility could persist.

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