Dow Climbs While Nasdaq Slides as Fed Policy, Tariffs, and Media Deal Drive Market Crosscurrents

U.S. stocks opened mixed Tuesday as investors weighed signs of corporate resilience against macroeconomic headwinds and sector-specific pressures.

The Dow Jones Industrial Average rose 139.48 points, or 0.31%, to 45,051.3, boosted by optimism around industrial and consumer names. By contrast, the S&P 500 slipped 9.32 points, or 0.14%, to 6,439.83, while the Nasdaq Composite dropped 132.74 points, or 0.61%, to 21,497.0, reflecting weakness in tech. The Russell 2000 edged lower by 0.03 points, or 0.01%, to 227.93.

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Bond markets continue to flash caution. The yield curve is steepening, driven by expectations of Federal Reserve rate cuts and a flood of Treasury issuance. “If the market thinks the Fed is cutting for political reasons, it puts upward pressure on inflation expectations and ultimately long rates, which also steepens the curve,”

On the corporate front, General Motors shares gained traction after Wedbush Securities raised its price target to $65 from $55, citing confidence in the automaker’s ability to absorb tariff costs estimated at $4 billion to $5 billion this year. “GM has many different strategies based on the range of options that should help soften the tariff damage regarding production relocation and a host of cost/logistics planning operations in 2025 and beyond,” Wedbush analysts, led by Daniel Ives, wrote. The firm also highlighted GM’s $5 billion investment program and partnership with Hyundai to co-develop new models as signals of long-term growth.

In media, Nexstar Media Group said it will acquire rival Tegna in a $6.2 billion deal, including debt, expanding its broadcast footprint to 80% of U.S. television households.

Tuesday’s trading highlights the diverging forces shaping Wall Street: optimism around strategic corporate moves offset by broader unease over fiscal sustainability and monetary policy. The Dow’s climb suggests resilience in traditional sectors, but the Nasdaq’s retreat reflects ongoing skepticism toward rate-sensitive technology names.