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Tue, May 6, 2025, 12:35 PM 4 min read
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U.S. stocks trader lower Tuesday afternoon as investors eyed rising volatility and digested fresh — and troubling — trade data.
The Dow Jones Industrial Average fell 300 points, or 0.74%. The S&P 500 also slid 0.62, and the Nasdaq dropped 0.73%. The small-cap Russell 2000 fell 1%.
Palantir (PLTR) stock dropped 13% Tuesday, despite reporting strong first-quarter results following Monday’s close. The company touted rapid growth across its U.S. operations — but that wasn’t enough to satisfy Wall Street.
The U.S. trade deficit widened more than expected in March, rising to $140.5 billion — a 14% jump from February’s revised $123.2 billion, according to new data released Tuesday by the Census Bureau and Bureau of Economic Analysis.
Economists had forecast a shortfall of $137.6 billion, but imports surged, driving the deficit sharply higher —and revealing a key unintended consequence of rising trade tensions.
The report comes just as the Federal Reserve kicks off its two-day policy meeting. While rates are expected to stay put, Fed Chair Jerome Powell’s remarks on Wednesday will be endlessly combed for any signals about future rate directions — and any hints as to political goings-on behind the scenes.
According to trade tracker Vizion, U.S. export activity has slumped across nearly all product categories since early 2025, with agriculture especially hard hit. Ports from Oregon to Savannah are reporting double-digit drops in outbound container traffic, and arrivals from Asia plunged 43% in late April.
Freight executives now liken the disruption to early COVID-era chaos, as businesses cancel orders, shift sourcing, and scramble to navigate rising costs.
Ford (F) posted Q1 revenue of $40.7 billion and adjusted EBIT of $1.0 billion, but yanked its full-year guidance, unsurprisingly attributing the move to deepening uncertainty over tariffs and global regulations. The company now expects a $1.5 billion hit to adjusted EBIT this year, and execs promised updated guidance in Q2.
The exposure is real: Ford’s sprawling global supply chain relies heavily on imports of auto parts and raw materials, particularly from Mexico, Canada, and China. The company has already weathered billions in costs from past steel and aluminum tariffs and now faces fresh pressure as the U.S. signals a new round of levies. Ford stock was up 1% Tuesday morning.
Mattel (MAT) also beat expectations — with Q1 revenue up 2% to $827 million — but joined Ford in scrapping its 2025 forecast. The toymaker flagged up to $270 million in tariff-related costs and said it will raise prices, shift supply chains, and cost cuts to blunt the impact.
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