Wall Street’s Sell-Off Eases as Market Rebounds

NEW YORK (AP) — On Tuesday, Wall Street’s recent sell-off showed signs of easing. This comes after a turbulent period where concerns about the economy and tariffs saw the market dip nearly 9% below its peak.

The S&P 500 index was up by 0.2% in early trading, offering a small recovery after it fluctuated significantly, moving by at least 1% either up or down on seven occasions within the past eight days.

The Dow Jones Industrial Average saw a decline of 132 points, or 0.3%, as of 9:50 a.m. Eastern time. This was an improvement compared to the previous day, where it momentarily fell over 1,100 points. Meanwhile, the Nasdaq composite gained 0.8% during this time.

Several major technology stocks provided some support for the market after experiencing heavy losses in recent months. For instance, Tesla shares increased by 5.9%. In a show of support, President Donald Trump mentioned he was considering buying a Tesla, referring to it as “Elon’s ‘baby.’ ”

However, a day before, Tesla’s stock had dropped by 15.4%, bringing its total loss for the year to around 45%. Trump attributed Tesla's struggles to political adversaries who he claimed are “trying to illegally and collusively boycott Tesla,” as the company’s CEO, Elon Musk, pushes for reduced government spending.

Other large technology companies, which had previously driven the market to new highs, also exhibited signs of resilience. Nvidia saw a rise of 3.2%, reducing its year-to-date loss to 17.8%. Nvidia has been under pressure as many expensive tech stocks have faced downturns amid worries of an overinflated market driven by hype around artificial intelligence.

Despite these slight recoveries, there are still troubling signals regarding the economy. President Trump’s inconsistent approach to tariffs has left many households and businesses feeling uncertain. The fear is that this unpredictability could directly impact economic growth or cause businesses and consumers to become hesitant to spend.

Delta Air Lines pointed out that changes in consumer confidence are already influencing flight bookings, prompting the airline to significantly lower its revenue growth forecast for the first quarter of 2025. The expected growth has been reduced from 7%-9% to only 3%-4%.

Delta’s stock fell by 3.6% as a result.

Meanwhile, Southwest Airlines adjusted its forecast for an important revenue indicator downward, citing reduced government travel among other factors. Despite this, its stock surged by 8% after the airline announced it would start charging fees for some checked bags and implement new strategies to reward loyal customers.

Oracle Corporation saw a decline of 4% after releasing quarterly results that did not meet analysts' expectations.

Internationally, stock markets showed mixed results in Europe and Asia. In Shanghai, stocks climbed by 0.4%, while markets in Hong Kong remained stable as China concluded its annual national congress, introducing measures aimed at stimulating its slowing economy.

In the bond market, Treasury yields remained steady after a decline amid concerns about the U.S. economy. The yield on the 10-year Treasury note was observed at 4.22%, a stabilization after falling from nearly 4.80% in January.

WallStreet, Tesla, Economy