Today, U.S. stock markets experienced notable movements influenced by upcoming tariff announcements and company-specific developments. The White House announced President Trump will share the tariffs information on U.S. trading partners at 4 p.m. on Wednesday.
Major Indices Decline Ahead of Tariff Announcement
Investors are cautiously awaiting President Donald Trump’s “Liberation Day” announcement of new tariffs, leading to declines in major indices. The S&P 500 futures fell almost 1%, Nasdaq 100 futures declined over 1%, and Dow Jones Industrial Average futures dropped 0.78% as of early morning trading.
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Tesla’s stock declined 2.6% as the company prepared to release its first-quarter delivery numbers. Analysts anticipate a decrease in deliveries due to weaker sales in the U.S. and Europe.
On the other side Tesla (TSLA) is making a significant move in the Middle East with its latest expansion. The company announced plans to begin sales in Saudi Arabia starting April 10, marking a major milestone as it enters one of the world’s largest oil economies, where electric vehicle adoption remains in its early stages.
With EVs accounting for just 1% of total car sales in Saudi Arabia, the market presents a huge growth opportunity. The country’s Vision 2030 initiative, aimed at economic diversification and sustainable energy, aligns well with Tesla’s entry. This move also intensifies competition in the region, where companies like BYD (BYDDY) and Lucid (LCID) – the latter backed by Saudi Arabia’s Public Investment Fund (PIF) – are already establishing their presence.
CoreWeave, Inc. Class A Common Stock (CRWV)
CoreWeave’s shares rise over 15% early trading, continuing the trend observed since its recent public debut. Artificial intelligence startup saw its shares surge 42% on Tuesday, closing at $52.57 in their third day of trading. This marks a significant increase from its IPO price of $40, adding over $7 billion to the company’s market value by the end of the day.
Nvidia (NASDAQ: NVDA) and Meta Platforms (NASDAQ: META) Face Declines
Nvidia (NVDA) shares decreased by 1.5% early trading amid broader market concerns over impending tariffs. This just confirms the trend as investors reacted to concerns over new U.S. tariffs that could impact the company’s supply chain and international sales. Curious to learn more about 5 AI Stocks to Blast Off While Nvidia Catches Its Breath – get the details here!
The decline follows broader market unease as tariffs could limit Nvidia’s ability to sell advanced AI chips to China, one of its key markets. The company has already faced restrictions on exporting its high-performance GPUs to Chinese firms, and further trade barriers could weigh on revenue growth. Analysts warn that if these tariffs escalate, Nvidia and other semiconductor companies may face increased operational challenges, potentially affecting future earnings.
Despite the pullback, Nvidia remains a dominant force in the AI and semiconductor industry. Investors will closely watch how the company navigates these trade tensions and whether it can offset potential losses by expanding into other international markets.
Meta Platforms Inc saw a 0.2% decline following the resignation of its AI research head, Joelle Pineau. Pineau’s departure could pose a challenge for Meta as it strives to compete with OpenAI, Anthropic, and Elon Musk’s xAI in the race for AI innovation. CEO Mark Zuckerberg has prioritized AI as Meta’s main focus, announcing in January that the company plans to invest up to $65 billion in AI-related projects in 2025.
Fintech firm nCino Inc (NASDAQ: NCNO) stock tumbled 25% after the company reported lower-than-expected earnings and guidance. The steep decline puts the stock on track to hit an all-time low, reflecting investor disappointment with the firm’s financial performance.
For its fiscal fourth quarter, nCino reported revenue of $141.4 million, a 14% year-over-year increase. However, profitability was a major concern, as the company posted a $0.16 loss per basic and diluted share in the fourth quarter of fiscal 2025 — four times higher than what analysts had forecasted. Even on an adjusted basis, earnings per share (EPS) came in at $0.12, compared to $0.21 per diluted share in the fourth quarter of fiscal 2024.
The company’s outlook for both the first quarter ending April 30, 2025, and full fiscal year 2026, ending January 31st, 2026 also fell short of Wall Street expectations. nCino projected Q1 revenue between $138.75 million and $140.75 million, with adjusted EPS ranging from $0.15 to $0.16. For the full year, the company anticipates revenue of $574.5 million to $578.5 million and adjusted EPS of $0.66 to $0.69—figures that are all below analyst estimates.
If stock losses hold the trend, the company will reach a new all-time low, signaling growing investor concerns over its ability to meet profitability targets and sustain growth in an increasingly competitive financial software industry.
Charles Schwab (NYSE: SCHW) Upgraded by Citi
In contrast, Charles Schwab’s shares rose nearly 1.5% premarket but currently at 0.79% following an upgrade by Citi on Wednesday morning, reflecting optimism about the company’s prospects despite broader market apprehensions.
Citigroup elevated Charles Schwab Corp (NYSE:SCHW) from “neutral” to a “buy,” while also raising its price target from $85 to $102. The target was more than 31% above where share closed on Tuesday. The brokerage firm highlighted the bank’s strengthening growth and balance sheet. As of the latest update, SCHW had risen by 0.79%, trading at $78.36. A considerable number of analysts were already positive about Charles Schwab before today’s announcement. Shares hold a 5% gain so far this year through Tuesday.
Bank Of America put out a cautious note as banks and financial companies prepare to report first-quarter results late next week, with JPMorgan Chase (JPM), Wells Fargo (WFC) and BlackRock (BLK) to report.
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Investor Sentiment
The market’s cautious stance reflects the potential economic impact of the forthcoming tariffs, with our team closely monitoring developments that could influence trade relations and corporate earnings. Information remains limited, igniting worries about which sectors might be hit hardest and the potential for an economic slowdown. As of Tuesday, the administration had not finalized tariff levels and was still weighing multiple options, according to a Bloomberg News report that referenced sources close to the discussions.
This article is for informational purposes only and does not constitute financial advice. Market conditions can change rapidly; always consult with a financial advisor before making investment decisions.
FAQ: Market Update, April 2, 2025
Why are U.S. stock markets declining on April 2, 2025?
Major indices like the S&P 500, Nasdaq 100, and Dow Jones are dropping due to investor caution ahead of President Trump’s “Liberation Day” tariff announcement scheduled for 4 p.m. on Wednesday, April 2, 2025. Uncertainty about new tariffs on U.S. trading partners is driving the declines.
What’s happening with Tesla’s stock today?
Tesla’s stock fell 2.6% as the company prepares to release its Q1 2025 delivery numbers, with analysts expecting weaker sales in the U.S. and Europe. However, Tesla also announced an expansion into Saudi Arabia, starting sales on April 10, which could signal future growth.
How are tariffs affecting Nvidia?
Nvidia’s shares dropped 1.5% amid concerns that new U.S. tariffs could disrupt its supply chain and limit sales of advanced AI chips to China, a key market. Further trade barriers could challenge its revenue growth, though it remains a leader in the AI and semiconductor space.
What caused nCino’s stock to plummet?
nCino’s stock fell 25% after reporting lower-than-expected earnings and guidance for Q4 2025. The company posted a $0.16 loss per share—four times higher than forecasts—and its revenue and EPS outlook for Q1 and full-year 2026 also missed Wall Street estimates.
Why did Meta Platforms’ stock decline?
Meta’s stock dipped 0.2% after the resignation of its AI research head, Joelle Pineau. This could impact its AI innovation efforts, a key focus for CEO Mark Zuckerberg, who plans to invest up to $65 billion in AI projects in 2025.
What’s the outlook for Charles Schwab stock?
Charles Schwab’s shares rose 0.79% after Citi upgraded it from “neutral” to “buy” and raised its price target from $85 to $102. Analysts are optimistic about its growth and balance sheet strength, despite broader market concerns.
When will President Trump announce the new tariffs?
The White House has scheduled President Trump’s tariff announcement for 4 p.m. on Wednesday, April 2, 2025, though specific details about tariff levels remain unclear as of Tuesday.
How might the tariffs impact the broader economy?
The tariffs could affect trade relations, corporate earnings, and potentially lead to an economic slowdown. Investors are worried about which sectors will be hit hardest, with limited information available as the administration finalizes its plans.
What should investors do in this market?
Market conditions are volatile due to tariff uncertainty. The article advises consulting a financial advisor before making investment decisions, as conditions can change rapidly and this update is for informational purposes only.
