Nasdaq Down 0.5% as Bank of America CEO Says Tariffs Are Settling Down
Stocks remain close to record highs even after falling slightly on Monday as tariff fears abateacross the market.
Quick overview
- Bank of America CEO Brian Moynihan stated that the impact of tariffs on the economy is diminishing.
- Despite recent losses, U.S. stock indices remain near record highs, with significant gains in 2025.
- The tech sector has shown weakness recently, but concerns over AI market issues have lessened.
- Moynihan anticipates further stock market growth in 2026 as tariff effects continue to decline.
Bank of America CEO Brian Moynihan said that the effects of tariffs on the economy are diminishing, even as the stock market remains close to record highs.
Monday saw losses across the board for the top three U.S. stock indices, but that was not enough to knock the market off of its near-record highs. For 2025 so far, the Dow has gained 14.5% and the S%P 500 added 17.9%. The Nasdaq Composite is up by 22.2% in 2025 as tariff fears are lessening.
As the market opened Tuesday, the stock values changed little, with all three indices holding close to the flat line. The tech sector is weaker this week than it was last week, but there is no indication that AI market concerns are as strong as they were through late November and early December. Palantir (PLTR) fell 2.4%, and Nvidia (NVDA) dropped 1% on Monday as tech stocks faltered heading into the end of the year.
Bright Days for the Stock Market Expected ahead
Even with stocks near all-time highs, they could surge further and set a record year of gains in 2026. Bank of America CEO Moynihan believes that tariffs are not impacting the market and the economy as much as they were earlier in the year, and he believes that their negative effects are coming to an end.
Trade wars and fears over an incoming recession have hurt the stock market this year but not enough to keep a number of stocks from achieving record highs. Even now, as 2025 closes off, all three major U.S. stock indices are hovering close to their all-time highs.
The S&P 500 dropped 0.35% on Monday, while the Nasdaq fell 0.5%. The Dow lost 0.5% as well as the market settled down after a minor Santa Clause rally. Because the market has not lost much of its recent gains, it is likely that we will see new record highs even before the end of the current year.
Tariff issues are still plaguing China and imports from the country fell by 25%. However, the U.S government brought in $236 billion from tariffs this year. At this point, tariffs are up 16-17% from the previous year. So, even though tariffs have not gone back to their previous levels, their impact on the stock market is definitely waning.
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