Wall Street opens flat as Trump tempers tariff rhetoric; Nvidia, Tesla rebound

Wall Street opens flat as Trump tempers tariff rhetoric; Nvidia, Tesla rebound

US stocks opened flat on Tuesday as investors attempted to stabilise after a sharp sell-off triggered by President Donald Trump’s sweeping tariff announcements. A softer tone from Trump late Monday helped soothe market nerves, with some traders now betting that the worst of the trade war scare may be behind.

At 9:33 a.m. ET, the S&P 500 was marginally higher, while the Nasdaq Composite rose 0.3 percent. The Dow Jones Industrial Average slipped 61 points, or 0.1 percent.

Trump hinted at flexibility around the newly set August 1 deadline for 25 percent tariffs on imports from countries including Japan, South Korea and South Africa.

The Dow had tumbled over 400 points on Monday as investors digested the scope of the new duties, which now cover at least 14 countries. But sentiment improved slightly as analysts questioned whether the tariffs would be fully implemented or simply used as a bargaining chip.

Tech stocks anchored early gains. Nvidia climbed 0.8 percent, building on its recovery from Monday’s dip, while Tesla surged 2.7 percent, rebounding from a 6.1 percent slide. Other megacap tech names, including Apple (+0.5 percent) and Microsoft (+0.3 percent), supported the Nasdaq’s advance.

Energy and materials sectors lagged, with oil majors like ExxonMobil (-0.4 percent) and Chevron (-0.3 percent) under pressure amid falling crude prices. The renewable energy sector faced headwinds after Trump’s executive order targeting subsidies. Sunrun dropped 3.2 percent, First Solar fell 2.8 percent, and Enphase Energy slid 3.5percent in early trading, as investors weighed the impact of reduced incentives on project economics.

Financials also weakened following HSBC’s downgrade of major banks. JPMorgan Chase fell 1.1 percent, Goldman Sachs declined 0.9 percent, and Bank of America slipped 0.7 percent, with analysts citing rising funding costs and potential margin compression ahead of Q2 earnings.

With the July earnings season approaching, investors are looking to corporate results for direction. Strong earnings from tech and consumer sectors could counterbalance policy-driven uncertainty, potentially pushing the S&P 500 back toward its June highs. However, risks remain, including inflationary pressures from tariffs and tighter monetary policy signals from the Federal Reserve.

The Cboe Volatility Index (VIX) eased slightly to 14.2, signaling reduced fear compared to Monday’s spike but still above its long-term average. Trading volumes are expected to remain elevated as markets digest policy developments and position for earnings reports.