U.S. stocks moved slightly on Tuesday during a rare calm day in the markets.
The S&P 500 slipped 0.2%, the Dow Jones Industrial Average dropped by 155 points, or 0.4%, and the Nasdaq composite fell by less than 0.1%.
These small changes gave investors a break after recent wild shifts in the market, not just from day to day but even within hours. On Monday, the S&P 500 went from a 1.8% gain to a small loss and then back to a gain, as it reacted to changing signals from President Donald Trump’s trade war. Economists have warned that this ongoing conflict could lead to a global recession if it isn’t reduced.
The bond market in the U.S. also showed more signs of steadiness. Last week’s sharp changes had raised concern that investors might be losing confidence in U.S. government bonds as a safe investment.
The yield on the 10-year Treasury dropped to 4.33% from 4.38% the day before. It had fallen from 4.48% at the end of last week after rising from just 4.01% earlier. Yields usually drop when investors are nervous, and this week’s move signals a return to more typical behavior for a traditionally secure investment.
The U.S. dollar’s value also steadied after dropping last week, which had caused more concern that the trade war was hurting its status as a reliable place for investors during uncertain times. On Tuesday, the dollar rose against the euro and Swiss franc but fell slightly against the British pound.
On Wall Street, shares of Albertsons dropped 7.6% even though the grocery chain beat profit expectations for the last quarter. The drop came after the company gave a weaker outlook for profit in the upcoming year than analysts had predicted.
DaVita’s stock fell 3% for a second day after announcing that a ransomware attack had disrupted some of its services. The health care company said it’s still looking into the attack, which it found out about on Saturday, and doesn’t yet know the “full scope, nature, and potential ultimate impact.”
Trader Kessler on the NYSEOn the positive side, Bank of America rose 3.6% after reporting higher-than-expected profit for the latest quarter. Most major U.S. banks have had strong results to start the year, helped by gains in their trading units that have benefited from recent market swings linked to Trump’s changing tariff policies. Citigroup also beat expectations, and its stock increased 1.8%.
Palantir Technologies gained 6.2% for the second day in a row after NATO announced it will use the company’s artificial intelligence tools in its operations.
At the close, the S&P 500 fell by 9.34 points to 5,396.63. The Dow Jones dropped by 155.83 points to 40,368.96, and the Nasdaq composite dipped by 8.32 points to 16,823.17.
Despite the relatively quiet day, concerns about the trade war remain. The U.S. and China, the two biggest economies, continue to add more tariffs on each other’s goods and take other steps to increase pressure.
Trump has said he wants to bring more manufacturing jobs to the U.S. and reduce the trade gap between what the country imports and exports.
At the same time, China’s leaders are trying to show they are a source of “stability and certainty” as they visit several countries in Southeast Asia this week.
In international markets, stocks rose across Europe and Asia. Germany’s DAX gained 1.4%, and London’s FTSE 100 rose 1.4%.
Automakers helped push indexes higher in Asia. Japan’s Nikkei 225 increased 0.8%, and South Korea’s Kospi rose 0.9%.
In China, markets were less steady. Hong Kong’s Hang Seng rose 0.2% after swinging back and forth during the day, and Shanghai’s index edged up 0.1%.
