4:55pm: Tariff blow
President Donald Trump announced a new tariff policy on Wednesday, imposing a 10% baseline duty on all imports, with higher tariffs for select countries.
China faces the highest levy at 34%, followed by the EU at 20%, as part of Trump’s push against what he calls unfair trade practices.
Markets initially rallied on expectations of a moderate approach but reversed sharply as details emerged. Stocks fell, the dollar strengthened, and analysts warned of further volatility ahead.
4:15pm: Green light
Markets closed higher on Wednesday, with all three major indices posting gains as investors displayed optimism across various sectors.
The Dow Jones Industrial Average rose 235 points, or 0.6%, to close at 42,225. Gains were primarily driven by strong performances in consumer staples and healthcare stocks.
The S&P 500 gained 38 points, or 0.7%, finishing the day at 5,671. Broad-based strength was seen across sectors, with technology and energy leading the way.
The Nasdaq Composite outperformed, climbing 151 points, or 0.9%, to close at 17,601. The rally was fueled by strong demand for semiconductor and AI-related stocks.
Despite lingering concerns about recent economic data and geopolitical risks, investors focused on corporate earnings and growth prospects, helping to push the indices higher.
3:42pm: Wednesday's headlines
Tesla Inc (NASDAQ:TSLA) reported first first-quarter vehicle deliveries significantly below analyst expectations, sending shares of the electric vehicle maker almost 5% lower on Wednesday.
But shares rebounded late morning on Wednesday following an unconfirmed report Elon Musk could soon leave his position in the Trump administration’s Department of Government Efficiency (DOGE).
Rivian also reported first quarter vehicle deliveries in line with prior guidance. The company produced 14,611 vehicles at its Normal, Illinois facility and delivered 8,740 vehicles during the quarter ending March 31, aligning with guidance of 14,000 and 8,000 respectively.
Ultimate Fighting Championship (UFC) and Meta Platforms Inc (NASDAQ:META, ETR:FB2A, SWX:FB) have announced a multi-year partnership aimed at boosting fan engagement using Meta’s technologies.
BlackBerry (TSX:BB) shares plummeted after the cybersecurity firm issued a weaker-than-expected revenue outlook.
2:35pm: Amazon bidding for TikTok?
Amazon.com Inc (NASDAQ:AMZN) has reportedly made a last-minute bid to acquire TikTok's US assets, according to a New York Times report citing sources with knowledge of the matter.
This comes as TikTok faces an April 5 deadline to divest from its Chinese parent company, ByteDance, or risk being banned in the US due to national security concerns.
The New York Times reported that Amazon’s bid is not being seen as a serious contender.
Other potential buyers include Oracle and private equity firms like Blackstone, with some proposals suggesting a joint venture or new American investors instead of a full sale.
1:41pm: Tariff anticipation builds
Analysts are divided on the immediate effects, but many share concerns about the long-term sustainability of the tariffs and the risk of escalating economic disruption.
Michael Brown, Senior Research Strategist at Pepperstone, expressed unease over the imminent announcement. "The day arrives amid a sense of dread, and perhaps even fear, as to the tariffs that might be announced."
Brown noted that while the specifics of the tariffs remain unclear, questions linger about whether VAT will be included in reciprocal tariff calculations and whether the US will impose a blanket tariff on most imports. He also warned that the announcement is likely to mark the beginning of another tumultuous trade saga rather than its conclusion.
The uncertainty surrounding the tariffs has already led to shifts in market sentiment, with investors flocking to bonds as a safe haven.
"It would be naive to think that today will mark the end of the tariff shenanigans," said Ipek Ozkardeskaya, Senior Analyst at Swissquote Bank.
"More likely, it marks the start of another phase of uncertainty and turmoil."
12:52pm: Positive momentum
Despite lingering concerns over trade policies and economic uncertainty, markets are recovering from previous volatility, with investors closely monitoring global trade developments, including recent tariff announcements.
The Nasdaq is leading the upward trend with a 1.2% gain, driven by strong sentiment in the technology sector.
All major indices are showing positive movement, with the S&P 500 rising 0.8% and the Dow Jones Industrial Average up by 0.7%, reflecting moderate investor confidence.
Overall, the market is responding favorably to current economic indicators and trends.
12:22pm: Is Musk leaving DOGE?
Tesla Inc (NASDAQ:TSLA) shares rebounded late morning on Wednesday following an unconfirmed report Elon Musk could soon leave his position in the Trump administration’s Department of Government Efficiency (DOGE).
The Politico report, which cited Trump insiders, claimed that the president remains pleased with Musk and DOGE, but that in recent days the two men had decided it would soon be time for Musk to return to his businesses.
Musk would stay on in a supporting role, the report said.
Tesla shares traded 3.6% higher late morning, reversing course from losses as much as 6.4% earlier in the session after Musk’s electric vehicle maker Tesla reported disappointing first quarter delivery numbers.
11:40am: Auto tariffs drive demand destruction
President Trump's announcement of 25% tariffs on imported cars, light trucks, and certain auto parts are likely to disrupt the automotive industry significantly, impacting supply chains, production costs, and consumer prices, warns Bank of America.
"In our view, the price increases will drive demand destruction, particularly as affordability has been a challenge for all buyers," the bank wrote.
If automakers pass through the full 25% tariff on imported vehicles, US car sales could drop by approximately 3.2 million units annually, the bank estimates. representing a 20% decline from the current trend of 16 million units.
In a less severe scenario, where automakers absorb some costs and pass through only 15% of the tariff, the lost sales volume would be about 2.5 million units, or a 15% reduction, according to BofA.
10:51am: 'High-risk experiment'
The CEO of global financial advisory and asset management firm deVere Group predicts that within six to twelve months, Trump will be forced to reverse course—not just due to economic pressures, but also because of political and strategic realities that make these tariffs unsustainable.
“While the White House touts the rollout of ‘reciprocal’ tariffs as a bold move to reclaim industrial might, we see them as a high-risk experiment that’s already fraying at the edges," commented Nigel Green, head of deVere.
“History teaches us that trade wars are easy to start but hard to win, and the early signs of strain are already visible across markets and boardrooms.
“Investors have learned to tune out some of the noise that accompanies the Trump presidency, but this time is different.”
9.55m: Tesla leads retreat
US stocks opened lower but already have trimmed their losses.
The Dow Jones has fallen 0.5% and the S&P 500 0.45%, while the Nasdaq has slipped down 0.4% and the Russell 2000 dropped 0.5%.
Tesla shares skidded 4% lower as its first-quarter vehicle deliveries were parked significantly below analyst expectations.
The electric vehicle maker delivered 336,681 vehicles in Q1, below analyst forecasts of 360,000-390,000 and down 13% year-over-year.
8.45am: Trump's schedule all about tariffs and TikTok
Two bits on the wires concerning Donald Trump's plans for the day.
The first is the schedule for the President's 'liberation day' has been shared, starting at 9am ET when Trump will convene with his trade council to finalise the "transformative tariff initiative".
Then, at 11:30am ET, just as trading closes in London and Europe, White House press secretary Karoline Leavitt will preview the announcement before at 4pm ET in the White House Rose Garden, Trump will unveil the "bold reciprocal tariffs, restoring fairness to US trade". The President will hold a press conference right after.
And in the evening, Trump administration officials will brief US industry leaders on how the tariff plans are to be implemented.
The final line is a doozy: "8:00 PM ET: Global markets respond as the impact of America’s renewed strength takes hold."
Trump will also, according to Reuters and CBS, consider a "final proposal" over the sale of TikTok’s US operations today, ahead of Saturday's deadline for owner ByteDance to find a buyer.
Latest plans reportedly include involving US investors, possibly Oracle and the Blackstone, while other reports have mentioned Musk's X.
Reuters says the "final proposal" involves new investors such as Blackstone joining existing non-Chinese shareholders in ByteDance in providing fresh capital to bid for the business.
7am: Nasdaq futures flashing red
US stock futures were flashing red early on Wednesday, ahead of a session that is expected to be nervy ahead of President Trump's tariffs announcement timed to coincide with the closing bell later.
Dow Jones futures indicated a 0.5% fall, with S&P 500 futures 0.6% underwater and Nasdaq 100 futures 0.7% to the bad.
The day before, the Dow closed flat, while the S&P and Nasdaq rose 0.2% and 0.5% respectively, thanks to gains from the 'Magnificent 7' tech giants.
President Trump’s reciprocal tariffs are set to be unveiled in a speech tonight at 4pm ET.
"That means another nervy session as investors and traders struggle to position themselves ahead of the event," says market analyst David Morrison at Trade Nation.
"The trouble is that there’s such opacity in advance of tonight’s announcement. It’s therefore unsurprising that most traders are sitting on their hands, or taking mitigating action such as hedging and trimming their exposure to risk assets."
Nvidia, Tesla and Palantir shares are again the prominent pre-market movers, all in the red.
Tesla is due to unveil its production and delivery numbers today. Analysts expect the EV maker to have sold 377,592 vehicles - around 2% below last year’s figure.