S&P 500 Dips Amid New Tariff Moves and Key Earnings Reports - Market Update

Michael Bromberg brings over ten years of financial editorial expertise, simplifying complex market trends into accessible insights. Holding a BA in literature from the University of Wisconsin-Madison and a master's in linguistics from Universidad de Antioquia, he bridges clarity and depth in financial reporting.

Market Highlights

• The S&P 500 declined 0.8% reacting to tariffs imposed on key U.S. trading partners while investors anticipate pivotal earnings and labor data.
• Moderna's stock continued its downward trend after a Goldman Sachs downgrade citing high costs and uncertain revenue forecasts.
• IDEXX Laboratories surged over 11% after exceeding quarterly earnings expectations, driven by strong demand in its Companion Animal Group segment.

U.S. stock markets opened February on a lower note following President Trump's announcement of tariffs targeting imports from Canada, Mexico, and China. However, stocks partially recovered after a delay was announced for Mexico tariffs.

Alongside trade concerns, this week features earnings reports from giants like Amazon and Alphabet, plus critical labor market data culminating with the January jobs report release on Friday.

Monday's trading saw the S&P 500 drop 0.8%, the Dow Jones Industrial Average fall 0.3% after recovering from early losses, and the Nasdaq Composite decline 1.2%, weighed down by tech sector weakness.

Moderna shares fell 7.3%, the largest drop in the S&P 500, following Goldman Sachs' downgrade to neutral. The biotech company’s revised revenue guidance and projected cash flow breakeven delay to 2029 raised investor concerns.

Franklin Resources shares declined 6.9%, retreating from recent gains despite solid quarterly profits. Revenue shortfalls and asset outflows tempered investor enthusiasm, with analysts maintaining an underperform rating.

FedEx shares slid 6.6% after Loop Capital downgraded the stock amid concerns that new tariffs could pressure transportation volumes and increase costs across the U.S. logistics sector.

Tesla shares decreased 5.2% as investors weighed tariff impacts on the electric vehicle maker’s global operations, especially in China and Europe, where recent sales softened.

IDEXX Laboratories led gains with an 11.1% rise after reporting strong quarterly sales and profits, fueled by growing demand for veterinary diagnostic services.

Molina Healthcare advanced 4.8% ahead of its upcoming earnings report, with expectations of notable year-over-year growth driven by its focus on low-income patient populations.

AbbVie shares rose 3.4% following upbeat fourth-quarter revenue and an improved long-term outlook for key anti-inflammatory drugs Skyrizi and Rinvoq, prompting several analysts to raise price targets.

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