US Stock Market Close: Trade Uncertainty Rises, Three Major Indexes Fall Collectively

On Tuesday, Eastern Time, investor concerns about the global trade situation intensified, leading to a collective decline in the three major indices, with the Dow Jones Industrial Average (Dow) falling nearly 1%.

(Minute-by-minute charts of the three major indices, source: TradingView)

By the close of trading, the Dow Jones Industrial Average fell 0.95% to close at 40,829.00; the S&P 500 fell 0.77% to close at 5,606.91; and the Nasdaq fell 0.87% to close at 17,689.66.

US President Trump stated on Tuesday that the US "does not need" to sign agreements with its trading partners.

This statement is markedly different from the White House's previous stance. US Treasury Secretary Bessent said on Monday that the US is "very close" to reaching some agreements. Trump himself also said on Sunday that it is "very likely" that trade agreements will be announced this week.

Investors and corporate executives are eagerly anticipating that the Trump administration will swiftly reach a series of bilateral agreements with trading partners such as Japan, South Korea, and India to secure breathing room before a full-scale trade war drags down the US economy.

However, to date, no formal agreements have been announced between the US and its trading partners. Senior White House officials have been claiming almost daily that multiple agreements are "close to being finalized," but none have materialized.

The US Fed is set to announce its interest rate decision on Wednesday, Eastern Time. The market widely expects the Fed to maintain the current interest rates, with federal funds rate futures indicating only a 3.1% probability of an interest rate cut.

However, investors will closely monitor comments from Fed Chairman Powell on the economic outlook.

Steve Rick, Chief Economist at TruStage, stated, "Despite external pressure to cut interest rates, the Fed may persist in maintaining its current wait-and-see stance amid uncertainties surrounding major economic factors. As the impact of tariffs gradually becomes apparent, we anticipate that economic growth will slow compared to the past few months."

WeRide surged over 31%, and Pony.ai soared more than 47%, as both companies announced on Tuesday the expansion or establishment of cooperation with ride-hailing giant Uber.

Performance of Popular Stocks

All seven major tech stocks declined, with Apple falling 0.19%, Microsoft down 0.66%, NVIDIA down 0.25%, Google down 0.60%, Amazon down 0.72%, Meta down 2.00%, and Tesla down 1.75%.

Most popular Chinese ADRs rose, with the Nasdaq Golden Dragon China Index up 0.42%. Alibaba rose 0.86%, JD.com closed flat, Pinduoduo rose 0.42%, NIO fell 1.51%, XPeng Motors fell 1.00%, Li Auto rose 1.70%, Bilibili closed flat, Baidu rose 1.07%, NetEase fell 0.76%, and Tencent Music rose 1.48%.

Company News

[Nvidia CEO Says China's AI Market Could Reach $50 Billion, Missing Out Would Be a Huge Loss]

Nvidia CEO Jensen Huang stated that the market size for artificial intelligence (AI) chips in China could reach $50 billion in the coming years, making it crucial for US companies to gain access to the Chinese market. "As a US company, it would be a huge loss if we couldn't participate," Huang said in an interview with CNBC.

[AMD Reports Q1 Revenue of $7.44 Billion, Up 36% YoY]

AMD reported Q1 revenue of $7.44 billion, up 36% YoY, compared to an estimated $7.12 billion. Adjusted earnings per share were $0.96, up from $0.62 in the same period last year, and above the estimated $0.94. Adjusted operating income was $1.78 billion, up 57% YoY, compared to an estimated $1.76 billion. Adjusted operating margin was 24%, up from 21% in the same period last year, and above the estimated 24.6%. AMD's Q1 R&D expenses were $1.73 billion, up 13% YoY, compared to an estimated $1.69 billion. Capital expenditures were $212 million, up 49% YoY, compared to an estimated $172.6 million. AMD expects Q2 revenue to be between $7.1 billion and $7.7 billion, with the market estimating $7.23 billion.

AMD's stock rose over 5% in after-hours trading following the earnings report.

[Super Micro Computer Reports Q3 Net Sales of $4.6 Billion, Missing Estimates]

Super Micro Computer reported Q3 net sales of $4.6 billion, below analysts' expectations of $4.76 billion. The company expects full-year net sales to be between $21.8 billion and $22.6 billion, down from its original estimate of $23.5 billion to $25 billion. It expects Q4 net sales to be between $5.6 billion and $6.4 billion, below analysts' expectations of $6.59 billion.

Super Micro Computer's stock fell over 6% in after-hours trading.

[Google to Appeal Ruling in US DOJ Ad Tech Case]

Google announced that it opposes the court's ruling in the US DOJ ad tech case regarding the publisher tool Google Ad Manager and will file an appeal. Google stated that, in accordance with litigation procedures, both parties will list remedial measures in response to the court's ruling.