US stocks jittery as tariff concerns remain: S&P flat, Dow slips at open

US stocks showed signs of recovery on Tuesday as investors attempted to recover from Monday’s sharp sell-off, spurred by President Donald Trump’s announcement of new tariffs on imports from more than a dozen countries.

Markets found some relief after Trump signaled a more flexible stance on the Aug 1 deadline, offering room for negotiation.

The Nasdaq Composite rose 0.3%, led by a 0.6% gain in Nvidia as the chipmaker edged closer to a $4 trillion market capitalization.

The Nvidia stock has surged up close to 15% since the start of the year.

Tesla stock also rebounded 2% after falling more than 6% the previous session.

The S&P 500 traded slightly above flat, while the Dow Jones Industrial Average dipped 61 points, or 0.1%.

Trump, in remarks late Monday, said the August deadline for imposing the new 25% tariffs was “not 100% firm,” adding, “If they call up and they say something a different way, we’re going to be open to that.”

The comments followed formal notices to countries including South Korea, Japan, South Africa, and Kazakhstan outlining new duties.

While Monday's market reaction was swift—with the Dow shedding over 400 points—traders now appear less concerned that the tariffs will be implemented in full.

Many believe the latest salvo in the trade war may serve more as a negotiation tactic than a definitive policy shift, potentially easing the path forward for risk assets.

Wall Street analysts raise S&P 500 target but see limited upside

Bank of America strategist Savita Subramanian has raised her 2025 S&P 500 target to 6,300 from 5,600, reflecting a limited upside of just 1.1% from Monday’s close of 6,229.98.

“It’s hard to identify a positive catalyst for the S&P 500 to continue its meteoric run into Q3,” Subramanian wrote.

Subramanian also flagged decelerating earnings growth in the tech sector — a key driver of corporate profits — as a potential headwind.

The revised target follows the index’s climb to fresh record highs last week, a sharp reversal from the steep pullback in April triggered by the April 2 tariff announcement.

At its worst, the S&P 500 had fallen nearly 20% from its February closing peak.

Subramanian had previously slashed her year-end forecast to 5,600 from 6,666 in the aftermath of the market’s sell-off.

Goldman Sachs, on the other hand, has raised its year-end S&P 500 target to 6,600, implying a gain of nearly 6% from the index’s latest close.

The revised forecast reflects a more optimistic outlook for the second half of 2025, as equities continue to rebound from their April lows.

David Kostin, Goldman’s chief US equity strategist, also lifted the firm’s 3-month and 12-month targets to 6,400 and 6,900, respectively.

Kostin had previously set a 2025 target of 6,100 in mid-May, citing uncertainty around trade policy.

The new outlook suggests improving confidence in corporate earnings and market resilience as macroeconomic conditions stabilize.