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Focus on tariffs, data and Fed

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Trump to announce extensive tariffs on Wednesday

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S&P, Nasdaq eye worst quarter since 2022

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Indexes: Dow up 0.23%, S&P 500 down 0.38%, Nasdaq down

1.18%

(Updates to mid-afternoon pricing)

By David French

March 31 (Reuters) - The S&P 500 and the Nasdaq declined

on Monday, with technology stocks among the largest fallers, as

investors took a cautious approach to U.S. equity markets ahead

of the Trump administration's upcoming tariff plans being

announced.

Global stocks tumbled, gold prices scaled new highs and U.S.

government bonds climbed after U.S. President Donald Trump said

on Sunday that expected tariffs he is set to announce on

Wednesday will include all nations.

He has already imposed tariffs on aluminum, steel and autos,

along with increased tariffs on goods from China.

"I think (April 2) might mark peak policy uncertainty, but I

don't think it's going to mean that tariff uncertainty is going

away," said Adam Turnquist, chief technical strategist for LPL

Financial.

U.S. stock markets have sold off this year as the Trump

administration's tariff policies raised fears of a global trade

war that would hurt economic growth and spur inflation.

The three major U.S. indexes are on track for sharp monthly

and quarterly losses, with the S&P 500 and the

tech-centric Nasdaq poised for their steepest quarterly

drops in three years.

While these falls have been significant, LPL's Turnquist

said the S&P 500 was finding resistance around its March 13

closing low, which alongside broader economic data remaining

steady, provided encouragement we may be approaching the bottom.

"For the intermediate and longer term investors, there are

some more signs which we are looking for, but certainly holding

those March lows is a big piece of evidence that, maybe, the

worst is behind us," he added.

By 1:53 p.m. ET, the Dow Jones Industrial Average had

ticked up 95.67 points, or 0.23%, to 41,679.57, helped by gains

by Walmart ( WMT ) and Home Depot ( HD ).

Meanwhile, the S&P 500 was lower by 21.04 points, or

0.38%, to 5,559.90 points, and the Nasdaq Composite had

dropped 203.78 points, or 1.18%, to 17,119.21.

Tech stocks were the worst hit, with Nvidia ( NVDA ) falling

3.4% and Microsoft ( MSFT ) down 2.1%, as investors worried

about companies' spending plans for artificial intelligence.

Tesla fell 3.6% after investment bank Stifel

lowered the electric-vehicle maker's delivery forecast ahead of

Wednesday's first-quarter report.

The S&P 500 consumer staples sector, often

considered a safe haven within stock markets, rose 1.1%, while

the energy index advanced 0.7%, tracking a jump in crude

prices.

The domestically focused Russell 2000 Index was down

1.2%.

The CBOE Volatility Index, Wall Street's so-called

fear gauge, jumped to a two-week high of 22.66 points.

As a result of tariff uncertainties, Goldman Sachs raised

the probability of a U.S. recession to 35% from 20%, cut its

year-end target for the S&P 500 to 5,700, and forecast more

interest rate cuts by the Federal Reserve.

Focus this week will also be on economic data, including ISM

business activity surveys and the crucial non-farm payrolls

report. Also due this week are speeches from several U.S.

central bank officials, including Fed Chair Jerome Powell.

Drugmakers' shares slid after reports the U.S. Food and Drug

Administration's top vaccine official had been forced to resign.

Moderna ( MRNA ) dropped 9.3%, while Pfizer ( PFE ) fell 1.2%.

Gene therapy companies Taysha Gene Therapies ( TSHA ) and

Solid Biosciences ( SLDB ) fell 31.3% and 15.5%, respectively.

In deals news, Rocket Companies ( RKT ) was down 9.6%, on

track for its lowest finish in seven weeks, after the mortgage

lender said it agreed to a $9.4 billion acquisition of Mr Cooper

Group ( COOP ). The announcement, though, sent the mortgage

servicer's stock up 14%.