US markets mixed to begin second quarter as Trump's tariff day looms

President prepares to unveil new list of tariffs this week

Traders on the floor of the New York Stock Exchange during morning trading on April 1. Getty Images / AFP

Markets in the US were mixed during a volatile trading session on Tuesday to begin the second quarter of the year, as continuing uncertainty over President Donald Trump's tariffs continue to weigh on investor sentiment.

Mr Trump was expected to unveil a list of tariffs on Wednesday – which he has called “Liberation Day” – that he has said will reduce US reliance on foreign goods. He said on Monday that he had made a decision on the latest plans, but did not reveal details.

The Dow Jones Industrial Averaged closed relatively flat at market close, down 0.03 per cent after paring losses of about 300 points earlier in the session. The S&P 500 and Nasdaq, which are coming off their worst quarterly losses since 2022, ended the day in green, rising 0.38 per cent and 0.87 per cent.

The yield on the 10-year Treasury fell about eight basis points to 4.167 per cent.

“The ebbs and flows of safe-haven support have dominated the Treasury market price action recently, and we expect that will continue over the near term as traders await tomorrow's tariff details and any global response,” Oxford Economics' lead US analyst John Canavan wrote in a note.

Investors received another piece of unwelcome economic data on Tuesday, as manufacturing activity contracted again in March as companies grapple with uncertainty over tariffs.

“A front-running of tariffs and shift to minimise import exposure is driving up prices, while persistent uncertainty is crimping underlying demand and leaves manufacturers longing for clarity,” Wells Fargo analysts wrote to clients.

A separate report from the Bureau of Labour Statistics showed job openings slid in February, showing that the labour market is gradually cooling. The Labour Department was due to release March's employment figures on Friday.

Markets entered the week facing a heightened degree of uncertainty over Mr Trump's self-imposed April 2 deadline on his tariff agenda. His much-delayed approach towards slapping levies on US trading partners has sent market sentiment plummeting, raised recession forecasts from the private sector and has muddied the outlook for the world's largest economy.

Mr Trump has so far given few details of his tariff plans, although the Wall Street Journal previously reported he could announce a flat 20 per cent tariff on most countries. The tariffs could also be more targeted.

White House press secretary Karoline Leavitt told reporters on Tuesday that Mr Trump had "made a decision" on his tariff plans. Mr Trump on Monday said the tariffs would be lower than what other countries are charging the US.

Nevertheless, the tariff saga has sparked renewed fears of a global trade war that could reignite inflation and slow economic growth in the US.

The EU, Canada and other trading partners are preparing to retaliate to Mr Trump's tariff decision.

The White House said the tariffs would immediately go into effect when he announces them.