Top StoryUS

Updated Story: Wall Street Reels Before Trump’s Global Tariff Plan

Updated Story: Wall Street Reels Before Trump’s Global Tariff Plan

Updated Story: Wall Street Reels Before Trump’s Global Tariff Plan \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ U.S. stocks surged after a volatile day as Wall Street braced for President Trump’s sweeping new tariffs, revealed as part of his “Liberation Day” economic agenda. Market jitters stemmed from fears of rising inflation, global retaliation, and economic slowdown, though positive hiring data offered a silver lining. Tesla rebounded after reports Musk may step away from his government role.

Wall Street Volatility – Quick Looks

  • Trump’s Tariff Reveal: Trump announced a 10% baseline import tax, plus steep surcharges on surplus countries.
  • Markets Whip Around: The S&P 500 swung from -1.1% to +1.1% before closing up 0.7%.
  • Tesla Turmoil: Shares dropped early but closed up 5.3% amid rumors of Musk exiting government post.
  • Liberation Day Unfolds: Chart unveiled: China (34%), EU (20%), Japan (24%), Taiwan (32%), South Korea (25%).
  • Tariff Jitters: Concerns mount over economic slowdown, inflation, and business uncertainty.
  • Retail Stocks Fall: After-hours drops hit Deckers (-9.3%), Lululemon (-8.8%), Williams-Sonoma (-8.4%).
  • Job Market Holds Strong: ADP report showed stronger-than-expected private hiring in March.
  • Bond Market Echoes Swings: 10-year Treasury yield dipped to 4.11%, then rebounded to 4.18%.
  • Airlines Bounce Back: United Airlines rose 4.6% as travel demand fears eased.
  • Newsmax Pulls Back: Shares plunged 77.5% after two explosive trading sessions.

Deep Look

Wall Street delivered another rollercoaster session Wednesday as investors awaited President Donald Trump’s “Liberation Day” announcement—a sweeping economic pivot centered on global tariffs that could fundamentally reshape trade and rattle financial markets worldwide.

The S&P 500 ended the day up 0.7%, recovering from a sharp morning loss of 1.1% before surging by the same amount in the afternoon. The Dow Jones Industrial Average climbed 235 points or 0.6%, while the Nasdaq composite rose 0.9%, continuing a recent trend of volatile intraday swings driven by policy uncertainty and investor anxiety.

Much of the turbulence stemmed from Trump’s pending announcement. After market close, he unveiled the details: a 10% baseline import tax on all goods entering the United States, plus elevated tariffs targeting countries that run large trade surpluses with the U.S. Among the announced rates:

  • China: 34%
  • European Union: 20%
  • South Korea: 25%
  • Japan: 24%
  • Taiwan: 32%

Framing the policy as a long-overdue correction to what he called a “rigged” global trade system, Trump said the tariffs were part of a national economic emergency and promised they would bring jobs back to American factories.

“We’re done being the world’s piggy bank,” Trump said, standing beside a chart of the new rates.

Markets had been bracing for the news all week, with many traders fearing the impact of tariffs on consumer prices, global supply chains, and economic growth. Economists warn that even if the measures are softened later through negotiation, the uncertainty and erratic rollout could alone be enough to stall business investment and chill consumer spending.

Wall Street’s intraday rebound was partially fueled by a surprise turn in Tesla stock, which initially plunged over 6% after reporting a decline in Q1 deliveries. But shares reversed course and gained 5.3% after Politico reported that Trump has privately told aides that Elon Musk may soon step back from his government duties as head of the Department of Government Efficiency (DOGE).

Musk has faced increasing criticism from shareholders, with accusations that his political role has distracted him from his core duties at Tesla. Earlier this week, New York City’s comptroller backed a lawsuit alleging Musk was “driving Tesla off a financial cliff” due to divided focus. The recovery in Tesla shares helped stabilize broader tech sentiment, contributing to the Nasdaq’s late-day rise.

Meanwhile, the bond market mirrored the stock market’s volatility. The yield on the 10-year U.S. Treasury dropped early to 4.11%, only to bounce back to 4.18% by the afternoon. The movement reflects heightened uncertainty over future growth and inflation, both of which could be impacted by global trade disruptions.

Despite the policy chaos, some economic data offered a glimmer of hope. A report from ADP Research showed that private-sector employers accelerated hiring in March, exceeding economists’ expectations. The stronger-than-anticipated report raised optimism ahead of Friday’s more comprehensive U.S. government jobs report. If the labor market holds firm, it could serve as a critical buffer against the risks of recession.

“The job market remains one of the strongest pillars of this economy,” said UBS strategist Kurt Reiman, who added that while tariff uncertainty remains, the worst may soon pass.

That optimism is not shared by all. Retailers braced for impact as concerns over higher import costs began to ripple through the sector. After-hours trading saw steep declines in consumer-focused companies including:

  • Deckers Outdoor (Uggs): -9.3%
  • Lululemon: -8.8%
  • Williams-Sonoma: -8.4%

Some of the biggest declines were attributed to fears that consumers facing higher prices due to tariffs will pull back on discretionary spending. That’s particularly true for companies reliant on global supply chains or overseas manufacturing.

One surprise performer was Newsmax, which had skyrocketed in its public debut this week but fell 77.5% on Wednesday in its third day of trading. Despite early enthusiasm from conservative investors, volatility and profit-taking appear to have set in.

Airline stocks, meanwhile, recovered some ground, with United Airlines up 4.6% amid hopes that travel demand may hold up better than feared despite tariff-linked inflation concerns.

In international markets, the mood was similarly uncertain. European and Asian indexes finished mixed, with investors watching closely for further retaliation from major U.S. trading partners.

As Trump’s “Liberation Day” tariffs begin to take effect, Wall Street is left parsing the policy details and recalibrating for a potentially more protectionist U.S. trade stance. Whether the plan delivers the promised manufacturing revival—or leads to higher costs, slower growth, and strained international alliances—remains to be seen.

More on US News

Updated Story: Wall Updated Story: Wall

Previous Article
Tesla Sales Drop 13% as Backlash Grows
Next Article
Trump Orders Target Law Firms, Stir Clearance Fears

How useful was this article?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this article.

Latest News

Menu