Traders work on the floor of the New York Stock Exchange on Feb. 13, 2025.
Danielle DeVries | CNBC
The S&P 500 was little changed on Wednesday, as the latest jobs data exacerbated concerns about the economy and appeared to pull attention away from hopes of a compromise on President Donald Trump’s controversial tariffs.
The S&P 500 added 0.2%, while the Nasdaq Composite ticked higher by 0.1%. The Dow Jones Industrial Average bounced by 162 points, or 0.4%, after plunging more than 1,300 points over the last two sessions.
Commerce Secretary Howard Lutnick said late Tuesday that he expected an announcement on an agreement with Canada and Mexico. Lutnick added on Wednesday morning that Trump was considering which sectors of the economy to give relief to on the taxes.
Those updates boosted stocks like automakers that were hard hit due to concerns about rising costs for materials. General Motors and Ford advanced more than 3% and 2%, respectively. Elsewhere, luxury clothing maker Canada Goose jumped more than 2%.
But even as investors’ desires for tariff resolutions swirled, Trump said a “little disturbance” from his levies slapped on the two countries — along with China, which was also hit with a new import tax — was OK during a Tuesday night address to Congress.
Stocks also felt downward pressure on Wednesday morning after ADP’s private payroll report showed far less job growth in February than predicted by economists polled by Dow Jones. That release added to a growing stack of data points which have raised alarm around the U.S. economy.
Trump’s tariffs — and subsequent announcements of retaliatory plans from China, Mexico and Canada — have rocked markets this week. Even without big declines on Wednesday, all three major indexes were down more than 2% on the week.
What’s more, the tech-heavy Nasdaq traded within striking distance of correction territory, a term that refers to an index falling 10% from a recent peak. The S&P 500 on Tuesday officially wiped out its gains since it closed on Election Day in November.
“The thing that we have emphasized over and over again is that Trump introduces uncertainty,” said Michael Green, chief strategist at Simplify Asset Management. “We now are at a point where a single tweet or a single release of information can significantly change the interpretation of what markets look like.”
