Closing Bell: Markets Rattle as Tariff Readjustment Fears Persist

Key Points

• Equities closed lower as tariff uncertainty and AI efficiency fears weighed on sentiment, with the SPX -1.04%, NDX -1.21%, and RUT -1.61%.
• After the Supreme Court struck down IEEPA tariffs, the administration signaled alternative trade measures, including licensing authority.
• DPZ beat on revenue ($1.54B) with U.S. same-store sales up 3.7%, but EPS and net income slightly missed.

Markets ended the day lower as tariff uncertainty and AI efficiency concerns continued to rattle investors. The S&P 500 (SPX) finished down 1.04%, the Nasdaq-100 (NDX) declined 1.21%, and the Russell 2000 (RUT) fell 1.61%. Consumer Staples, Health Care, and Utilities were the top-performing sectors, while Financials, Consumer Discretionary, and Industrials lagged.

President Trump Continues Tariff Threats

The market remains volatile after the Supreme Court struck down the IEEPA tariffs, prompting the Trump administration to pursue alternative trade measures to counteract the decision. This morning, President Trump stated that his administration could explore additional tools, including licensing authority, to impose further trade restrictions. The “temporary” 15% tariffs implemented by the administration fall under Section 122 of the Trade Act of 1974, which allows tariffs to remain in place for up to 150 days without congressional approval.

Domino’s Sees Strong U.S. Demand

Domino’s Pizza (DPZ) reported mixed fourth-quarter results. Revenue of $1.54 billion exceeded expectations, while EPS of $5.35 and net income of $181.6 million came in slightly below estimates. Performance was driven by solid domestic demand, with U.S. same-store sales rising 3.7%, topping forecasts. However, international same-store sales growth of 0.7% (excluding FX) missed expectations, reflecting softer global momentum.

Total revenue increased 6.4% year over year, supported by higher supply chain sales, increased franchise royalties, and strong U.S. advertising contributions. The company also announced a 15% increase to its quarterly dividend, raising it to $1.99 per share. However, margins at U.S. company-owned stores declined.

Market Events for Tomorrow (ET)

8:00 AM

• FOMC Member Goolsbee speaks
• ADP Weekly Employment Change

9:00 AM

• FOMC Member Bostic speaks
• FOMC Member Collins speaks
• S&P/Case-Shiller Composite

9:15 AM

• FOMC Member Waller speaks

9:30 AM

• FOMC Member Cook speaks

10:00 AM

• CB Consumer Confidence
• Richmond Manufacturing Index
• Final Wholesale Inventories

3:20 PM

• FOMC Member Barkin speaks
• FOMC Member Collins speaks

4:30 PM

• API Weekly Statistical Bulletin

9:00 PM

• President Trump speaks

Notable Earnings on Monday

• A.M: AS, AMT, BNS, BCC, DOCN, ELAN, EXPD, FIS, HSIC, HD, KDP, NRG, PLNT, PTLO, WLK

P.M: AMC, CWH, CAVA, CSGP, EOG, FSLR, FLYW, GDDY, HPQ, LCID, MQ, MELI, MOS, RRC, RVLV, TEM, TREX, WDAY, ZETA

This material is intended for informational purposes only and should not be considered a personalized recommendation or investment advice. Investors should review investment strategies for their own particular situations before making any decisions.

Schwab Network is brought to you by Charles Schwab Media Productions Company (“CSMPC”). CSMPC is a subsidiary of The Charles Schwab Corporation and is not a financial advisor, registered investment advisor, broker-dealer, or futures commission merchant.

Charles Schwab Media Productions Company and all third parties mentioned are separate and unaffiliated, and are not responsible for one another's policies, services or opinions.

Data contained herein is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. All events and times listed are subject to change without notice.