In after-hours trading on April 2, 2025, U.S. stocks experienced a notable dip following President Donald Trump’s announcement of sweeping tariffs. These tariffs, set to start at a minimum of 10% and potentially increasing for certain countries, have heightened concerns about a potential global trade war impacting the U.S. economy. The SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500, declined by approximately 2%, the Invesco QQQ ETF, aligned with the Nasdaq-100 Index, fell by 3.3%, and the SPDR Dow Jones Industrial Average ETF Trust (DIA) dropped by 1%.
Multinational corporations bore the brunt of the market’s negative reaction. Shares of Nike and Apple each tumbled 6%, while General Motors saw a 3% decrease. Companies heavily reliant on imported goods experienced sharper declines, with Five Below descending by 11% and Gap by 12%. The tech sector also faced pressure, as Nvidia’s shares slipped 4% and Tesla’s dipped 5%.
The tariffs, announced from the White House Rose Garden, set a baseline rate of 10% on all countries starting April 5, with even steeper duties for those imposing higher rates on U.S. exports. President Trump remarked, “We will charge them approximately half of what they are and have been charging us,” clarifying that this would not be an exact reciprocal measure. This lower rate would account for the cumulative impact of tariffs, non-monetary barriers, and other trade barriers imposed by these nations.
Market anxiety has been amplified by the realization that for many countries, the tariffs might exceed initial expectations. For instance, tariffs for Chinese imports could surge to 54%. “What was delivered was as haphazard as anything this administration has done to date,” observed Art Hogan, chief market strategist at B. Riley Wealth Management. He noted that the unexpected complexity and scale of the tariffs had not yet been fully priced into the market.
Although trading on Wednesday initially concluded positively, with the S&P 500 rising by 0.7%, the Dow Jones Industrial Average gaining 235 points (0.6%), and the Nasdaq Composite increasing by 0.9%, uncertainty loomed large over potential tariff repercussions. “If he would have come in with just the 10%, I think the markets would probably be up quite a bit right now,” commented Larry Tentarelli, chief technical strategist at the Blue Chip Trend Report. The broader S&P 500 has seen decline in five of the past six weeks due to the unpredictable nature of Trump’s tariff strategy since February, prompting renewed fears of a looming recession.
Earlier tariff introductions included significant duties of 25% on Canadian and Mexican goods, alongside a 10% increase on Chinese imports. February also saw new 25% tariffs on steel and aluminum, with more tariffs on automobiles and parts expected soon. Trump confirmed that tariffs on Canada and Mexico would maintain their present rates without additional adjustments. Stocks had intermittently rebounded on hopes for milder tariff measures until Wednesday’s announcement, which reignited fears of economic slowdown and inflation.
“More severe tariff rates are currently rocking share prices, but Trump is still negotiating,” noted Jeff Kilburg from KKM Financial, highlighting the ongoing nature of the situation. As global trade tensions heighten, stakeholders continue to watch closely for any further developments.
Original Source: https://www.cnbc.com/2025/04/02/stock-market-today-live-updates-trump-tariffs.html
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Publish Date: 2025-04-03 02:59:00
