Stocks Dip Amid Trade War Concerns as Automakers Rally

WASHINGTON — U.S. stocks experienced a slight decline on Tuesday, April 15, 2025, as market participants continued to navigate uncertainties surrounding the trade war initiated by President Donald Trump. The S&P 500 dropped 0.2%, while the Dow Jones Industrial Average fell by 155 points, or 0.4%, and the Nasdaq composite edged down by less than 0.1%.

Tuesday’s modest market movements provided a brief sense of calm following a volatile period in the financial markets. Investors had witnessed drastic swings, with the S&P 500 on Monday moving from a 1.8% gain to a slight loss before recovering back to positive territory. Economists caution that the ongoing trade conflict between the U.S. and China could culminate in a global recession if not addressed.

Market response was also reflected in the U.S. bond market, which showed signs of stability after last week’s sharp fluctuations raised concerns about the safety of U.S. government bonds. The yield on the 10-year Treasury note eased to 4.33% from 4.38%, after a significant drop from 4.48% at the end of last week. Typically, a decline in yields indicates a flight to safety among investors.

The value of the U.S. dollar steadied after a recent decline, which had raised fears about its status as a safe-haven asset. On Tuesday, the dollar ticked higher against the euro and Swiss franc but slipped against the British pound.

On Wall Street, Albertsons saw its stock fall 7.6% despite reporting profits that surpassed analysts’ expectations for the latest quarter. The grocery giant, which owns brands like Safeway and Vons, issued a profit forecast for the upcoming year that disappointed investors.

Meanwhile, DaVita’s stock sank 3% for a second consecutive day after the health care company disclosed that its operations were impacted by a ransomware attack. DaVita reported that it is still investigating the incident and does not yet know the full scope or potential impact.

In contrast, Bank of America shares rose 3.6% after reporting better-than-expected profits for the last quarter. Most major U.S. banks have shown strong financial results amid the ongoing market volatility, capitalizing on the swings driven by Trump’s fluctuating tariff policies. Citigroup also exceeded analysts’ profit estimates, pushing its stock up by 1.8%.

Palantir Technologies saw its stock climb 6.2% for the second day in a row after NATO announced plans to utilize the company’s artificial intelligence capabilities in its operations.

The S&P 500 finished the day down 9.34 points at 5,396.63, the Dow Jones Industrial Average declined by 155.83 points to 40,368.96, and the Nasdaq composite slipped by 8.32 points to 16,823.17.

Despite the modest moves in the market, concerns about the U.S.-China trade war persist. Both countries have been increasing tariffs on each other’s goods along with implementing various countermeasures. President Trump is focused on boosting U.S. manufacturing jobs while attempting to narrow the trade deficit.

In an effort to present itself as a stable partner, Chinese leadership has been engaging with nations across Southeast Asia this week.

Globally, stock markets saw a positive trend, with many indexes rising in Europe and Asia. Germany’s DAX index climbed by 1.4%, and the FTSE 100 in London also increased by 1.4%. Asian markets saw gains, with Japan’s Nikkei 225 adding 0.8% and South Korea’s Kospi rising by 0.9%. Chinese stocks had mixed results, with Hong Kong’s Hang Seng index rising by 0.2% after fluctuating during the day and Shanghai stocks inching up by 0.1%.

AP Business Writers Yuri Kageyama and Matt Ott contributed to this report.