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U.S. stocks fell Tuesday morning as President Donald Trump’s 25% tariffs on Canada, Mexico, and China took effect, prompting retaliatory measures from some countries.
Shortly after the market opened, the S&P 500 declined 1.1%, while the Nasdaq 100 dropped 1.2%. Dow Jones Industrial Average futures edged down 1%.
The S&P 500 had its worst day of the year so far on Monday, with stocks plunging after the ISM manufacturing index came in lower than expected and as investors braced for the new tariffs.
Here are stocks to watch on Tuesday.
Best Buy
Best Buy (BBY-14.76%) stock dropped 12% in the morning after the electronics retailer reported fourth-quarter results that exceeded Wall Street’s expectations. However, CEO Corie Barry indicated that prices for U.S. consumers are likely to increase due to President Donald Trump’s tariffs.
Chipotle
Chipotle Mexican Grill (CMG-2.48%) shares declined in morning hours due to concerns about the restaurant chain’s dependence on avocados, with 50% of its supply coming from Mexico. As tariffs on imports from Mexico take effect, investors are worried about the potential impact on the company. The company has said its diverse supply chain could help it withstand tariffs.
Nvidia
Nvidia (NVDA-0.97% stock fell in the morning as concerns mounted over AI-related spending and the impact of new tariffs. The chip manufacturer seems to be cautious about limitations on the export of AI chips. Nvidia stock plunged Monday after Singapore said it’s investigating whether servers shipped to Malaysia containing chips barred from China ended up in the mainland.
Super Micro Computer
Super Micro Computer (SMCI+5.71%, a key player in AI hardware, also declined, mirroring Nvidia’s slump. Investors are uncertain about how Trump’s tariffs could shape the future of the AI industry.
Target
Shares of Target (TGT-6.26%) were down in the morning as it beat Wall Street’s earnings expectations. For the fourth quarter, the company reported revenue of $30.92 billion, about $2.41 earnings per share. But Target said it expects a “meaningful” decline in first-quarter profits compared to the same period last year. The cautious outlook stems from “ongoing consumer uncertainty,” weaker sales in February, and mounting concerns over the impact of tariffs. President Donald Trump’s new tariffs on imported goods from Canada, Mexico, and China — which together accounted for almost 42% of total imports in 2024 — went into effect early Tuesday.
Tesla
Tesla (TSLA-6.52% stock declined more than 4% in the morning trading due to rising fears about tariffs among investors. It is likely that the new tariff will raise car prices.
Moreover, a day after Morgan Stanley analyst Adam Jonas designated Tesla stock as a “Top Pick” in the U.S. automotive sector and raised the price target, Bank of America reduced its price target for the stock from $490 to $380 while maintaining a Neutral rating.