Markets Turn Positive Late, a Day Ahead of Tariffs

Market Overview - Markets started off negatively but ended on an uptrend, with the Dow closing at -0.03%, S&P 500 at +0.38%, and Nasdaq at +0.87% [1] - The small-cap Russell 2000 closed at +0.02% [1] Tariff Developments - An important announcement regarding reciprocal tariffs on U.S. trading partners is expected, with +25% tariffs on most goods from Canada and +25% on all imported goods from Mexico, while +20% on Chinese imports is also anticipated [2] - Market participants are questioning whether blanket tariffs will be implemented or if there will be custom carve-out rates for certain goods [3] Economic Data Insights - The Job Openings and Labor Turnover Survey (JOLTS) for February reported 7.6 million job openings, slightly below expectations of 7.7 million, and down from a record high of 12.1 million in March 2022 [5] - ISM Manufacturing index came in at 49.0%, below the 50.3% from the previous month, while S&P final U.S. Manufacturing rose to 50.2% [6] - Construction Spending increased by 0.7% in February, exceeding the expected 0.3%, with a significant revision of the prior month from -0.2% to -0.5% [7] - Auto Sales for March showed a pull-forward effect before tariffs, with General Motors up 17%, Toyota up 1%, and Ford down 1.3% [8] Upcoming Economic Indicators - Private-sector payrolls from ADP are expected to show an improvement to 120K jobs filled, up from 77K in February [9] - Factory Orders for February are anticipated to decline to +0.6% from +1.7% reported the previous month [10]