Dow Jones - 42,677.24 (-0.27%) 

Nasdaq - 19,142.72 (-0.38%) 

S&P 500 - 5,940.46 (-0.39%) 

• S&P snaps its 6-day winning streak. Stocks barely ended in the green on Monday and on Tuesday went into red territory at the close. Investor relief over tariffs and inflation may have come to an end after last week's rally. The Dow fell nearly 3%, the S&P 500 fell nearly 4% and the NASDAQ dropped almost 4% as well.
• Tariff worries remain high. JPMorgan CEO Jamie Dimon warned this week that the market hasn't fully priced in tariffs and other things. “We have huge deficits; we have what I consider almost complacent central banks,” Dimon said. “You all think they can manage all this. I don’t think they can." Last week the US and China struck a deal to temporarily roll back tariffs but retailers including Walmart are announcing price increases from tariff implications. 
• Long-term treasury yields ticked higher. Long-term Treasury yields went higher to kick off the week as Moody’s US credit downgrade reignited market concerns over the country’s worsening fiscal trajectory. On Monday, the 30-year yield briefly broke above the closely watched 5% threshold, the highest level since 2023, before retreating to around 4.94%. On Tuesday they hovered near 4.97%. 
• Home Depot was in focus. The building retailer's profit fell short as same-store sales faltered, but its revenue topped forecasts and the home improvement chain held to its previous guidance. Its shares fell around 1% in late trading.
• Budget negotiations continued on Capitol Hill. Trump's tax bill continued to face challenges moving through the US House. 
• Warber Parker explodes on Google deal. The stock soared around 18% on Tuesday after Google announced its teaming up with the eyeglasses and contact lens retailer to develop AI-powered smart glasses. Google has committed up to $150 million to the project and has already put $75 million into product development costs.
• Elon Musk vows to stay Tesla's CEO. For the next five years the electric vehicle maker may not get another chief. "Unless I die," Musk said on Tuesday at an economic forum in Qatar.
• Bitcoin moved higher to nearly $107,000. Bitcoin saw gains as the crypto industry push for stablecoin legislation cleared a key hurdle on Monday night.
• UnitedHealth moved higher on insider buying news. UnitedHealth Group shares rose 8% Monday as investors learned that five company insiders including new CEO Stephen Hemsley bought stock in the battered health insurer.
• Rio Tinto scored a couple of deals. Chile’s Codelco is partnering with Rio Tinto on the development of its new Maricunga lithium project and Argentina's government has approved its $2.5 billion Rincon project.
• Nvidia dipped lower. The company announced that the effective U.S. ban on sales of its H20 chips to China could ultimately cost it a staggering $15 billion in sales.
• D-Wave Quantum shares exploded. The quantum computing firm announced the general availability of its new computer.
• Amer Sports moved higher. The sporting goods and apparel maker beat analysts' earnings estimates.
• On watch for today. Target (TGT), TJX (TJX), and Lowe's (LOW) will report their earnings.

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St. Louis Federal Reserve president Alberto Musalem said that even after Trump's 90-day trade truce with China, tariffs at their current levels could have a "significant" impact on the economy in the short term. "The range of possible economic outcomes for the next few quarters is wide," Musalem said. "Economic policy uncertainty is unusually high."

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Most Active Stocks

• Intel (INTC)
• Tesla (TSLA)
• Nvidia (NVDA)
• Home Depot (HD)
• Warby Parker (WRBY)

Weekly Notables

Reddit is Downgraded by Wells Fargo

Reddit (RDDT) received a downgrade from Wells Fargo this week. Wells Fargo analyst Ken Gawrelski dropped Reddit stock to a neutral equal weight call from overweight, also cutting his price target for the stock to 115 from 168. The analyst is concerned about user growth from Google search that have dogged Reddit stock this year. 

Elon Musk Says Tesla is Doing Great

At the Qatar Economic Forum on Monday, Tesla CEO Elon Musk defended his electric vehicle making company.  When questioned about Tesla's weakening sales in the first quarter and April sales thus far in Europe, Musk said the business has "already turned around," adding that "Europe is our weakest market" and that Tesla was "strong everywhere else." "Sales numbers are strong, we see no problem with demand," Musk added, despite falling sales numbers to the contrary. "You can just look at the stock price if you want the best inside information," he said. "The stock market analysts have that, and a stock wouldn't be trading near all-time highs if it was not, if things weren't in good shape. They're fine, don't worry about it."

Earnings Spotlight: Target

Target's anticipated earnings will indicate how bad tariff pressure is. The company is set to report first-quarter results before the opening bell today with analysts moderately bullish on the retailer's stock. Comparable store sales are expected to have fallen 1.5% year-over-year, though some analysts have warned that the metric could have declined 4%. Some analysts see Target lowering its full-year forecasts amid uncertainty around tariffs and the expected drop in comparable store sales.