Wall Street’s ‘Mag 7’ halt three-day rebound on tariff threat to drag Nasdaq lower by 1.5%; Nvidia, Tesla crack 4% | Stock Market News

A selloff in tech megacaps drove stocks lower, halting a three-day rebound, with concern about the economic impact of a trade war weighing on risk appetites as US copper surged and orders for business equipment slid.

Following their biggest winning run since November, the group of big techs known as “Magnificent Seven” got hit, with Nvidia Corp. and Tesla Inc. sinking over 3.5%. The Nasdaq 100 slipped 1%. Microsoft Corp. barely budged after TD Cowen analysts said the company had walked away from new data center projects in the US and Europe. A measure of big banks rose for a ninth straight day – the longest rally since 2006.

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A warning from the Congressional Budget Office that the Treasury risks a payment default as soon as August weighed on sentiment. And so did a report suggesting some companies are limiting investment as they await specifics on tariffs. US tariffs on copper imports were said to be coming within several weeks, months earlier than the deadline for a decision.

While the unpredictability of a trade war and risk of weaker economic growth have roiled markets, President Donald Trump has signaled plans to press ahead with those levies. On April 2, he’s planning to impose so-called reciprocal tariffs on nations that export way more to the US than they import from it and disadvantage American companies with trade barriers beyond import taxes.

“Tariffs will continue to garner attention, with traders looking for any updates on upcoming US reciprocal tariffs that will go into effect on April 2,” said Arthur Hogan at B. Riley Wealth.

The S&P 500 fell 0.3%. Trading volume was 20% below the average of the past month. The Dow Jones Industrial Average rose 0.3%. A gauge of megacaps sank 1.6%. The Russell 2000 slid 0.3%.

The yield on 10-year Treasuries advanced four basis points to 4.35%. The dollar gained 0.1%.

Tariffs and weakening survey data are set to weigh on the US stock market for the rest of the year, according to Barclays Plc strategists led by Venu Krishna, who cut their 2025 S&P 500 price target to 5,900 from 6,600.

The gauge hovered near 5,760 on Wednesday.

Worries over the economic effects of the global trade war are sapping liquidity in US stocks, creating a headache for institutional investors that could also boost volatility in broader markets.

Liquidity in S&P 500 stock-index futures, as measured in the most active contract, stands at a two-year low, data compiled by Deutsche Bank AG show.