By Samiat Apr, 03, 2025 Featured

Market Summary for Wednesday, April 2

Equities Close Higher But Retreat After Trump’s Tariff Announcement

U.S. equity markets ended Wednesday's session in positive territory, but stock futures declined in after-hours trading following President Donald Trump's announcement of sweeping new tariffs on several countries, including China, Japan, and the European Union.

The major indexes closed higher before the news:

• Nasdaq Composite: +0.9% to 17,601.1

• S&P 500: +0.7% to 5,671

• Dow Jones Industrial Average: +0.6% to 42,225.3

Most sectors advanced, with consumer discretionary stocks leading gains. However, consumer staples and communication services ended in the red.

Trump Announces Tariffs, Stock Futures Drop

After markets closed, President Trump unveiled a new set of tariffs, impacting key trading partners:

• China: 34% tariffs on imports

• Japan: 24% tariffs

• European Union: 20% tariffs

• United Kingdom: 10% tariffs

• Vietnam, Taiwan, and India: Varying tariff levels

• All imported automobiles: 25% tariff, effective midnight

Stock futures dipped in reaction to the news, signaling potential volatility in Thursday’s session.

Bond Market & Economic Data

U.S. Treasury yields declined on Wednesday:

• 2-year yield: Down 2.1 bps to 3.84%

• 10-year yield: Down 2.9 bps to 4.13%

Meanwhile, fresh employment data from ADP showed that private-sector job growth exceeded Wall Street estimates for March, though wage growth slowed.

Commodities Market Update

• WTI crude oil: +0.7% to $71.71 per barrel

• Gold: +0.6% to $3,166.20 per troy ounce

• Silver: +1% to $34.65 per ounce

Stock Highlights

• Tesla (TSLA) surged 5.3%, ranking among the top gainers on the S&P 500. Reports surfaced that Elon Musk will step back from his advisory roles in the Trump administration. However, Tesla's Q1 deliveries came in below expectations, with sharp year-over-year and sequential declines due to weak demand in key markets.

• Altria Group (MO) fell 2.8%, making it the second-worst performer in the S&P 500, after Deutsche Bank downgraded the stock from "Buy" to "Hold".

This market summary reflects a strong close for equities but after-hours turbulence as investors digest Trump’s tariff escalation and its potential impact on global trade.

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