Stocks dropped Tuesday as a relief rally proved short-lived and investor anxiety returned ahead of President Donald Trump's next tariff deadline that will see a cumulative tariff of 104% slapped on China just after midnight.

The Dow Jones Industrial Average dropped 320.01 points, or 0.84%, and closed at 37,645.59, bringing its four-day loss on tariff angst to more than 4,500 points. Apple led the losses with the iPhone maker's costs set to surge with new China tariffs. At its high of the day, the Dow was up 3.9%.

The S&P 500 declined 1.57% to end at 4,982.77. The index was inches away from closing in a bear market, down nearly 19% from its February record, and it ended the session below 5,000 for the first time since April 2024. Over the past four days, the S&P 500 has fallen more than 12%.

The Nasdaq Composite fell 2.15%, ending at 15,267.91. The tech-heavy benchmark rose as much as 4.5% earlier in the day. The Nasdaq has lost more than 13% in the four-day rout.

Stocks began the day higher with traders citing an oversold market as reason for the bounce. Investors were also encouraged by signs the U.S. would negotiate arrangements that would lower tariffs on major trading partners.

Trump posted on Truth Social on Tuesday that he had a "great call" with the acting president of South Korea, helping to boost sentiment. Treasury Secretary Scott Bessent also told CNBC on Tuesday that around 70 countries had approached the U.S. for tariff negotiations.

But, the market rally evaporated anyway, with shares such as Apple leading the rollover. Apple shares closed nearly 5% lower after having risen more than 4% earlier Tuesday. The iPhone maker has lost nearly 23% over the past four trading sessions.

New tariffs are set to kick in just after midnight on top of the 10% baseline duty already implemented on Saturday. The White House confirmed a cumulative 104% tariff rate will be implemented on Chinese goods overnight.

Investors will need to see more stability in trade policy for any market bounce to have legs, according to Robert Ruggirello, chief investment officer at Brave Eagle Wealth Management.

"There has to be some staying power, something [where] corporations can make longer-term capital allocation decisions. They have to have confidence in a consistent policy," said Ruggirello.

Tuesday marks a fourth session of market volatility since the rollout of Trump's tariffs.

Stocks finish lower Tuesday

U.S. stocks finished Tuesday's volatile session in the red.

The S&P 500 declined 1.57%. The Dow Jones Industrial Average ended down 320.01 points, or 0.84%.

The tech-heavy Nasdaq Composite dropped 2.15%.

— Hakyung Kim

Wayfair shares drop 12% as steep tariffs loom

Wayfair shares closed 12% lower Tuesday as worries about Trump's sweeping tariffs deepened.

The company has been shifting manufacturing to Vietnam from China to avoid the crossfire of U.S. trade tensions with Beijing. But Trump has now expanded his trade war worldwide, slapping steep tariffs on Cambodia, Indonesia, Thailand, the Philippines and Vietnam, among others.

The retailer's stock has sold off nearly 25% this month as the company could be affected by the new 46% tariff on Vietnam set to kick in Wednesday.

— Yun Li

Fed's Daly sees interest rate policy in 'a good place'

San Francisco Federal Reserve President Mary Daly said Tuesday that she backs the central bank's wait-and-see approach when it comes to interest rates.

"We've got policy in a very good place right now. We've cut the interest rate by 100 basis points last year. That puts policy in a good place to stay modestly restrictive, keep inflation coming down, but not so restrictive that the economy is vulnerable," Daly said during an event at Brigham Young University.

"So with growth good and and policy in a good place, we have built the time and the ability to just tread slowly and tread carefully," she added.

Daly does not vote this year on the rate-setting Federal Open Market Committee and will next vote in 2027.

— Jeff Cox

Apple headed toward largest four-day losses since 2008

Apple shares reversed their earlier gains and fell 4.5% Tuesday afternoon, after the White House confirmed a cumulative tariff rate of 104% on China. The iPhone maker has large supply chain and market exposure to the country.

The stock is now down 21% over the last four trading sessions, putting it on track for its worst four-day stretch since September and October 2008 during the great financial crisis. Apple has shed around $711 billion in market capitalization during this period.

— Hakyung Kim, Nick Wells

Coal stocks rise as Trump to sign order supporting industry

Coal stocks rose as President Trump is poised to sign an executive to support domestic production.

Peabody Energy Corporation rose about 10%, Core Natural Resources was up about 8% and Ramaco Resources jumped about 17% in afternoon trading.

Trump is expected to direct the National Energy Dominance Council to designate coal as a critical mineral, and order federal agencies to find coal on federal land and prioritize leases for extraction.

"If we want to grow America's electricity production meaningfully over the next five or 10 years, we [have] got to stop closing coal plants," Energy Secretary Chris Wright told CNBC's "Money Movers."

— Spencer Kimball

NYSE advancers and decliners nearly even on the day

The number of stocks trading higher at the New York Stock Exchange was nearly equal to decliners, a sharp contrast to previous sessions in which declining names far outnumber advancers. Roughly 1,300 NYSE-listed names were higher on the day, while another 1,400 were lower, according to FactSet.

This comes as investors come in to buy the dip after a tough three-day stretch on Wall Street. At one point on Friday, decliners led advancers 17-1

— Fred Imbert

Defense stocks outperform Tuesday

The iShares Aerospace & Defense ETF advanced more than 2% Tuesday, beating the S&P 500's marginal gains.

General Dynamics, Lockheed Martin and RTX were among the names leading the defense-focused fund.

— Hakyung Kim, Nick Wells

Emerging markets ETF falls back into the red

The iShares MSCI Emerging Markets ETF last traded around 0.4% lower.

This marked a reversal of the fund's gains earlier in the session, when it advanced as much as 3%.

— Hakyung Kim

U.S. crude oil falls below $60 per barrel as sell-off continues

Crude oil futures fell Tuesday, adding to steep losses on fears that Trump's sweeping tariffs will trigger a full-blown global trade war.

U.S. crude oil was down 79 cents, or 1.3%, to $59.91 per barrel, while global benchmark Brent fell $1.05, or 1.64%, to $63.16.

The U.S. benchmark rose as much as 1.7% earlier in the session, but pulled back as Trump's China tariffs loom over the market. Prices are down more than 15% since last Wednesday when Trump announced the new round of import taxes.

— Spencer Kimball

Russell 2000 slides into negative territory

Small-cap stocks fell into the red in afternoon trading on Tuesday as the market rally lost steam.

The small cap-focused Russell 2000 traded down 0.5% as of shortly after 12:45 p.m. ET. It is now down more than 3% from highs notched earlier in the session.

Investors have closely monitored the Russell 2000 after it entered bear market territory last week, which refers to a drop of at least 20% from its recent high.

The recent moves mark a reversal of fortunes, given that the index rallied following the November election as market participants expected President Trump's posture toward deregulation to benefit smaller firms. The small-cap benchmark is now down more than 19% in 2025.

— Alex Harring

Apple, Humana, Wells Fargo among the names making moves midday

Check out the stocks making big midday moves:

• Tech stocks — Shares of megacap technology names rose amid investor optimism that the U.S. would reach deals with other countries to lower tariffs. Apple, which lost around 20% over the past three trading days given its China exposure, rose more than 3%. Others such as Nvidia and Tesla also gained, rising about 6% and nearly 5%, respectively.
• UnitedHealth Group, Humana — The leading health insurance stocks jumped after the Centers for Medicare and Medicaid Services announced a higher-than-expected hike for government payments to Medicare Advantage plans. Shares of UnitedHealth rose 6.7%, while Humana's stock surged 10.8%.
• Wells Fargo — The bank stock climbed nearly 4% after Piper Sandler upgraded Wells Fargo to overweight from neutral. Piper Sandler said the banking giant's stock has an attractive valuation that appropriately captured the company's improving fortunes.

Read here for the full list.

— Sean Conlon

Morgan Stanley downgrades Lemonade to underweight

Morgan Stanley sees a tougher road ahead for insurance company Lemonade, downgrading the stock to underweight from equal weight Tuesday.

Lemonade is looking to expand into the auto insurance market, which is more competitive and uncertain, analyst Bob Jian Huang wrote in a note to clients.

"We believe the current market conditions around tariffs, intensified competition from incumbents, and macro uncertainties will make Lemonade's initiatives to 10x the business more difficult," he said.

In addition, the company is still several years away from profitability, he added.

The stock was down 1.5% in midday trading.

— Michelle Fox

S&P 500 can return to 5,400, CFRA's Sam Stovall says

The S&P 500 can rise back up to 5,400, according to Sam Stovall, chief investment strategist at CFRA Research.

Stovall said investors expect the White House is negotiating with foreign countries after President Trump unveiled his tariff plan last week, which sent financial markets into a tailspin. He also said they are expecting some concessions from trading partners.

Hitting the 5,400 level would mean the broad index gained 6.7% over where it finished Monday's session.

"I think we probably have to go up to about the 5,400 level on the S&P, which would represent the September retest of 2024," Stovall said on CNBC's "Squawk on the Street." "That becomes resistance."

— Alex Harring

Health insurance stocks rally after hike in Medicare Advantage payment rates

The iShares US Healthcare Providers ETF (IHF) rose more than 5% in morning trading and is pacing toward its best day since June 8, 2020, when it gained nearly 6.7%.

The jump comes after the Centers for Medicare and Medicaid Services announced late Monday that government payments to Medicare Advantage plans would increase by an average of 5.06% for 2026. That is above the 2.23% increase that was previously proposed.

Humana was a standout within that industry group, with the stock jumping 12%.

— Jesse Pound, Nick Wells

There are 474 advancers in the S&P 500

Tuesday's stock rally was broad based, with 474 S&P 500 advancers during midday trading.

All 11 S&P 500 sectors were trading in positive territory, with information technology the best-performing sector, while materials was the biggest laggard.

Information technology, which was up more than 4%, was buoyed by several chip stocks. Shares of Palantir Technologies and Western Digital climbed more than 8% each. Broadcom gained 8%. Nvidia rose more than 6%.

Humana was the top-performing stock, rallying along with other health-care companies after The Wall Street Journal reported the Trump administration will raise payment rates for Medicare insurers next year. Humana was last 10% higher. CVS Health, which was the third-best performing stock in the S&P 500, jumped more than 8%.

— Sarah Min

Semi ETFs poised for best day since August

Semiconductor funds on Tuesday headed for their best day in several months as the market rebounded.

The VanEck Semiconductor ETF (SMH) and the iShares Semiconductor ETF (SOXX) jumped more than 5% and 4%, respectively, as of shortly before 10:15 a.m. ET. Both were tracking for their biggest one-day gains since August.

Marvell Technology and Broadcom led the sector higher, rallying more than 9% and 8%, respectively. Retail investor favorite Nvidia also climbed, with shares of the artificial intelligence titan popping more than 7%.

Still, the SMH exchange-traded fund has dropped more than 8% compared with where it traded five sessions earlier. The SOXX fund has plunged around 10% during that period.

— Alex Harring

Small caps climb higher Tuesday

The Russell 2000 jumped more than 3% Tuesday, reversing Monday's losses to turn positive for the week.

Month to date, the benchmark small-cap index remains 7.3% lower following the broad sell-off on fears President Trump's tariff policy could lead to a recession.

— Hakyung Kim

Apple pullback is a buying opportunity: Bank of America

Apple's tumbling stock price presents an "enhanced buying opportunity for investors to own a high-quality name," said Bank of America analyst Wamsi Mohan.

The iPhone maker's shares have fallen about 25% so far this year due in large part to geopolitical uncertainty around Trump's tariffs and the delay of Siri features with artificial intelligence, Mohan said.

But the tech company has typically booked gains in the 12 months after an event that narrows its price-to-earnings ratio, the analyst told clients in a Tuesday note.

It is possible that the risk of tariff escalation with China could pose a more severe threat to Wall Street's consensus estimates for Apple, Mohan said.

But Apple has options to mitigate downside risk, including shifting production to India, increasing prices, changing the pace of product release and wringing efficiencies out of its supply chain.

— Spencer Kimball

Ray Dalio says he is 'very concerned' about tariffs

Billionaire investor Ray Dalio said he is worried about the negative effects of Trump's tariffs as they drive up costs and lower corporate revenue.

"What does it mean for a company? It means costs are going to go up, revenue is going to go down and capital is going to be harder to come by," Dalio said Tuesday on CNBC's "Squawk Box." "I am very concerned about the solution … the practicality of the solution."

The founder of Bridgewater Associates, one of the world's largest hedge funds, said it will also create "great sand in the gears of production worldwide" at the same time.

— Yun Li

Stocks jump Tuesday morning

U.S. stocks began Tuesday's session in the green.

The S&P 500 advanced 3.2%. The Dow Jones Industrial Average climbed 3.5%, while the Nasdaq Composite gained around 3.6%.

— Hakyung Kim

Small business confidence down as policy uncertainty rises

Small business confidence waned in March as the outlook for future conditions decreased the most in more than four years, according to the National Federation for Independent Business.

The NFIB's headline optimism index hit 97.4 for the moth, down 3.3 points from February and below the Dow Jones estimate for 98.7. In addition, the net share of owners expecting better business conditions tumbled 16 points to 21%, the biggest monthly fall since December 2020.

"The implementation of new policy priorities has heightened the level of uncertainty among small business owners over the past few months," said NFIB chief economist Bill Dunkelberg. "Small business owners have scaled back expectations on sales growth as they better understand how these rearrangements might impact them."

— Jeff Cox

High volume in Monday's trading may signal short-term bottom, technical strategist says

Monday's session saw the highest trading volume on the SPDR S&P 500 ETF (SPY) since 2020, which could signal a short-term bottom in the stock market, according to BTIG technical strategist Jonathan Krinsky.

"Over the past ten years, the four prior largest notional volume days all marked tactical lows, but all of those were re-tested and in some cases meaningfully broken over the ensuing weeks. In three of those four cases the high notional volume day also marked the intraday peak for VIX," Krinsky said in a note to clients. The VIX refers to the Cboe Volatility Index.

"We think this set-up is likely this time around in that we are seeing 'a' bottom for stocks and peak for VIX, but then re-test and possibly break to lower lows over the coming weeks/months," Krinsky continued.

The bounce could be substantial, as historical precedents suggest the S&P 500 may cut its recent losses in half before turning lower again, Krinsky said.

— Jesse Pound

Micron Technology planning to add tariff surcharge

Chipmaker Micron Technology is considering applying a tariff-related surcharge on certain customers beginning April 9, according to a report from Reuters.

The company previously indicated the possibility of such a plan during its earnings call on March 20.

President Donald Trump's retaliatory tariffs on major trading partners are set to take effect April 9.

Micron shares jumped 4% Tuesday before the bell.

— Hakyung Kim

Stocks making the biggest moves before the bell: Levi Strauss, Broadcom and more

These are the stocks moving the most in premarket trading:

• Levi Strauss — The jeans maker surged 11% after posting first-quarter adjusted earnings of 38 cents per share, which was 52% higher versus its year-ago period.
• Broadcom — Shares popped 3% after the chipmaker announced a $10 billion share repurchase program authorization through year-end.
• Marvell — Shares advanced 4% in premarket trading after the company agreed to sell its auto ethernet business to Infineon Technologies for $2.5 billion in cash.

Read the full list of stocks moving here.

— Lisa Kailai Han

Apple coming off worst three-day loss since 2001

Apple shares have plunged 19% over the past three trading sessions, marking its worst three-day performance since 2001, according to Goldman Sachs.

During this period, the iPhone maker has lost around $638 billion in market capitalization, per CNBC estimates. This is a larger value than the market capitalization of 489 companies in the S&P 500.

Shares added 1.3% Tuesday before the bell.

— Hakyung Kim, Tom Rotunno

Broadcom rises on $10 billion buyback announcement

Broadcom shares popped 3% in the premarket after the chipmaker announced a $10 billion share repurchase program authorization through year-end.

The announcement "reflects the board's confidence in the strength of Broadcom's diversified semiconductor and infrastructure software product franchises. In particular, we are uniquely positioned in mission critical infrastructure software and enabling hyperscalers to drive innovation in generative AI into their expanding subscriber platforms," CEO Hock Tan said in a statement.

— Fred Imbert

European markets open higher

European stocks made broad gains on Tuesday, reversing course after closing sharply lower on Monday.

The pan-European Stoxx 600 was 1.3% higher at 8:16 a.m. in London. Every sector barring telecommunications was in positive territory, with all major bourses edging higher.

London's FTSE 100 and the French CAC 40 each added around 1.4%, while the German DAX gained 0.8%.

— Chloe Taylor

Levi Strauss management gives itself 'wiggle room' on forecast, Telsey says

Levi Strauss shares are up more than 1% in extended trading after reporting a fiscal first-quarter earnings beat and reiterating its full-year outlook. The catch is the forecast excludes any effects from the Trump administration's tariffs.

Telsey Advisory Group CEO Dana Telsey told CNBC's "Closing Bell: Overtime" that Levi's management is giving itself some "wiggle room" by not raising earnings estimates after its latest beat. However, she expects the tariffs are going to put pressure on retailers.

"The diversification of sourcing that they talked about is certainly critical, but prices are going up," Telsey said.

Telsey said investors should stick with companies that have U.S. manufacturing such as Bath & Body Works, and are known for value or sell products such as groceries that you can't live without. She named TJX, Burlington and Costco as examples.

— Christina Cheddar Berk

Trading volume boomed as Trump’s tariffs shook stocks for a third day

Market participants traded about 29 billion shares on Monday, resulting in the highest volume day in at least 18 years, according to FactSet and Nasdaq Trader.

It was a rocky day for stocks, with the S&P 500 briefly touching bear market territory and the Dow Jones Industrial Average seeing a swing of 2,595 points from its low to the high of the session.

Monday's volume surpassed Friday's volume of 26.77 billion shares, as well as the 10-day average volume of 16.94 billion shares.

— Gina Francolla, Darla Mercado

CVS Health, Broadcom among the stocks making moves after hours

Here are some stocks making big moves in extended trading:

• Health-care stocks — Shares of Humana, CVS Health and UnitedHealth jumped after The Wall Street Journal reported that the Trump administration will raise payment rates for Medicare insurers next year to 5.06%, higher than the 2.23% increase the Biden administration had proposed. Humana gained more than 13%, while CVS Health and UnitedHealth advanced more than 7% and about 6%, respectively.
• Levi Strauss — The clothing stock rose more than 1% after the company reported its first-quarter results. Levi Strauss reported adjusted earnings of 38 cents per share, a 52% jump compared to the prior-year period. Revenue of $1.53 billion for the period also marked a 3% jump compared to last year.
• Broadcom — The semiconductor stock moved more than 2% higher following the company's authorization of a new $10 billion share repurchase program, effective through Dec. 31.

Read the full list here.

— Sean Conlon

Stock futures open in the green

Stock futures opened higher Monday evening after another volatile session on Wall Street.

Futures tied to the S&P 500, along with Nasdaq-100 futures, gained 0.6%. Futures linked to the Dow Jones Industrial Average jumped 321 points, or 0.8%.

— Sean Conlon