The positive vibes that sparked a three-day win streak for stocks faded Wednesday, with all three main benchmarks ending the day in the red. Technology led the path lower, though consumer discretionary wasn't far behind as auto stocks tumbled on fresh tariff news.
At the close, the blue chip Dow Jones Industrial Average was down 0.3% at 42,454, the broader S&P 500 had shed 1.1% to 5,712, and the tech-heavy Nasdaq Composite had plunged 2.0% to 17,899.
Among the mega-cap stocks applying significant pressure to the Nasdaq were chipmakers Nvidia (NVDA, -5.7%) and Broadcom (AVGO, -4.8%) and electric vehicle maker Tesla (TSLA, -5.6%).
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Elsewhere, General Motors (GM, -3.1%) and Stellantis (STLA, -3.6%) closed lower after the White House confirmed that President Donald Trump will make an announcement on auto tariffs after today's close.
Tariffs will remain top of mind for investors through at least next Wednesday, April 2, which Trump has dubbed "Liberation Day." Specifically, it is when the administration will announce a series of reciprocal tariffs.
As such, market participants will likely remain on tenterhooks for the time being as "policy uncertainty lingers," says Daniel Skelly, head of Morgan Stanley's Wealth Management Market Research & Strategy Team.
Skelly adds that "next week's tariff deadline will likely be more of a starting point for negotiations than a conclusion, so the market may struggle to recover in a straight line higher."
Dollar Tree pops on Family Dollar sale
Not all of the day's action was to the downside, though. Dollar Tree (DLTR), for one, jumped 3.1% after the discount-store chain said it is selling its underperforming Family Dollar segment to a group of private investors for $1 billion – a massive discount to the $9 billion it paid for the business in 2015.
The company also disclosed its fourth-quarter earnings report, which showed a sharp drop in revenue vs the year prior, though it sees top-line growth stabilizing in fiscal 2025.
Ahead of earnings, UBS Global Research analyst Michael Lasser (Buy) said sentiment toward DLTR had become too negative due to "the string of downward estimate revisions, questions about the positioning of the dollar stores and concerns about the impact of tariffs."
He also cited uncertainty over the company's plans for Family Dollar. This created a risk-reward that was "heavily skewed toward the upside," he added – which may explain why DLTR was one of the best-performing S&P 500 stocks today.
GameStop shocks Wall Street
Elsewhere on the earnings calendar, GameStop (GME) soared 11.7% after the video game retailer said Q4 net income more than doubled on a year-over-year basis to $131.1 million.
Wall Street was also pleasantly surprised by a separate announcement that indicated GameStop's board of directors approved adding bitcoin as a treasury reserve asset.
The company admits that using cash or future debt to buy bitcoin may cause the value of its investment portfolio to decline given that the cryptocurrency is a "highly volatile asset and has experienced significant price fluctuations over time." However, it adds that it will continually examine "the risks and rewards" of its strategy.
"GameStop impressed us with a rare operating profit for its holiday quarter," says Wedbush analyst Michael Pachter. As for the company's bitcoin strategy, Pachter notes these investments could impact its interest income, though it's unlikely to rock the boat too much in the near term.
Pachter has an Underperform (Sell) rating on the meme stock but lifted his price target to $11.50 from $10. For reference, GME closed Wednesday at $28.36.
Related content
- How to Delete Your 23andMe Data
- CoreWeave IPO: Should You Buy CRWV Stock?
- Would You Benefit From Investing in Cryptocurrency?
-
Quiz: Do You Really Know How Social Security Benefits Are Taxed?Quiz Social Security benefits often come with confusing IRS tax rules that can trip up financially savvy retirees and near-retirees.
-
Are You Ready for 65? The Medicare Initial Enrollment Period QuizQuiz Turning 65 soon? Test your basic knowledge of Medicare's Initial Enrollment Period (IEP) rules in our quick quiz.
-
3 Ways to Stretch the 2026 Social Security COLA For Your BudgetThree steps retirees can take to stretch the Social Security COLA to fit their budgets.
-
Giving Tuesday Is Just the Start: An Expert Guide to Keeping Your Charitable Giving Momentum Going All YearInstead of treating charity like a year-end rush for tax breaks, consider using smart tools like DAFs and recurring grants for maximum impact all the year.
-
Uber Takes Aim at the Bottom Lines of Billboard Personal Injury LawyersUber has filed lawsuits and proposed a ballot initiative, in California, to curb settlements it claims are falsely inflated by some personal injury lawyers.
-
Dow Slides 427 Points to Open December: Stock Market TodayThe final month of 2025 begins on a negative note after stocks ended November with a startling rally.
-
A Financial Adviser's Health Journey Shows How the 'Pink Tax' Costs WomenFact: Women pay significantly more for health care over their lifetimes. But there are some things we can do to protect our health and our financial security.
-
I'm a Cross-Border Financial Adviser: 5 Things I Wish Americans Knew About Taxes Before Moving to PortugalMoving to Portugal might not be the clean financial break you expect due to U.S. tax obligations, foreign investment risks, lower investment yields and more.
-
What to Make of a Hot IPO MarketThis year's crop of initial public offerings could be even dicier than usual because of a skew toward tech and crypto.
-
How to Position Your Portfolio for Lower Interest RatesThe Federal Reserve is far from done with its rate-cutting regime. This is how investors can prepare.
-
Show of Hands: Who Hates Taxes? The Best Time to Plan for Them Is Right NowBy creating a tax plan, you can keep more of what you've earned and give less to Uncle Sam. Here's how you can follow the rules and pay only your fair share.
