4:16pm: US-China trade war ramps up
Confirmation the Trump administration is boosting tariffs on Chinese imports to 104% starting on Wednesday saw stocks erase earlier gains and finish the trading session firmly in negative territory.
The tech-laden Nasdaq led the declines, down 2.5% to 15,267 points. This was driven by steep losses of more than 6% for both Apple and Tesla, which are significantly exposed to the US-China trade conflict.
The Dow Jones fell 320 points or 0.8% to 37,645 points while the S&P 500 shed 1.6% at 4,982 points.
4:01pm: Canada introduces auto tariffs
Canada will introduce new 25% tariffs on certain US-made vehicles starting just after midnight on April 9, in response to American trade measures.
The move follows the US's decision to impose its own 25% tariff on Canadian-made vehicles.
Canada's tariffs will target fully assembled vehicles that don’t meet Canada-US-Mexico Agreement (CUSMA) standards, as well as non-Canadian and non-Mexican components in vehicles that do meet those rules.
Ottawa said the action is aimed at pressuring Washington to reverse “unjustified” tariffs while incentivizing automakers to maintain production and investment in Canada. Last year, Canada imported over $35 billion in vehicles from the US.
3:48pm: Tuesday's headlines
China has vowed to "fight to the end" against the US tariffs imposed by Donald Trump, as another trade war threatens to explode.
Shares of US healthcare insurers moved higher following the announcement of a significant increase in 2026 Medicare insurer payment rates under the Trump administration.
Ripple said it will acquire prime brokerage firm Hidden Road for $1.25 billion, marking one of the largest deals in the digital assets industry as the company deepens its push into institutional finance.
US small business sentiment declined for a third straight month in March, as concerns over the economic outlook, weak sales expectations, and persistent labor challenges weighed on confidence.
3:10pm: Tariff shock
Following the White House's confirmation of 104% tariffs on China, the stock market reacted negatively, with the Dow Jones falling by 0.7%, the S&P 500 dropping by 1.3%, and the Nasdaq losing 1.8%.
Meanwhile, analysts at Wells Fargo posited that the import tariffs announced by President Trump on April 2 will lead to a significant rise in the effective tariff rate, from about 2% last year to over 20% in 2025. This increase could result in higher inflation, potentially causing an economic downturn.
While the bank acknowledges that tariffs may be reduced through international agreements, it assumes the effective tariff rate will stabilize at around 15% through Q4-2026. Wells Fargo forecasts that the inflationary impact of these tariffs will erode real income growth, leading to a decline in real consumer spending and overall GDP growth starting in Q3-2025.
As economic growth weakens and unemployment rises, the Federal Reserve is expected to begin an easing cycle, with 125 basis points of rate cuts by the end of 2025. However, the bank notes that the Fed may adjust its stance depending on inflation expectations and whether inflation becomes more persistent.
2:22pm: Markets lose momentum
US stocks lost momentum and hit session lows after the White House confirmed the implementation of 104% tariffs on Chinese imports, effective at 12:01 AM ET on April 9.
White House press secretary Karoline Leavitt reiterated President Trump's strong stance, stating, "Americans do not need other countries as much as other countries need us."
Despite the negative news, the S&P 500 and Nasdaq remained slightly up, with Nvidia gaining 2% after earlier rising 7%. The Dow Jones Industrial Average initially surged over 1,300 points but ended up 250 points higher.
1:45pm: Navigating tariff effects
As the market recovers and expectations of a less harsh tariff regime grow, sectors previously hurt by policy uncertainty may shift into winners, noted Jeff Buchbinder, Chief Equity Strategist for LPL Financial.
"Businesses will likely respond by ramping up US production and investments in growth initiatives, further reinforcing the economic rebound," Buchbinder said Tuesday.
Tax cuts and deregulation will become more prominent, the LPL analyst added, while investors, encouraged by stronger economic growth and stable corporate earnings, may become more willing to take on risk, investing in discounted sectors.
12:57pm: Healthcare boost
The Dow led the midday gains, climbing 1.4% on strong performances in the industrial and financial sectors.
The S&P 500 rose 1%, boosted by consumer discretionary and healthcare stocks, while the tech-heavy Nasdaq added 0.9% as major technology firms posted modest advances.
The broader market was lifted by several key factors, including a surge in healthcare shares—particularly Humana, which jumped 12% following a favorable update on Medicare Advantage payment rates for 2026.
Technology stocks, notably semiconductor firms like Nvidia and Broadcom, also advanced amid optimism around chip demand.
Additionally, easing concerns over potential tariffs from the Trump administration helped bolster investor confidence.
12:22pm: Nvidia leads Mag 7 gains
Shares of techology giants bounced amid optimism the US may negotiate tariff adjustments with other nations, led by chipmaker Nvidia Corp (NASDAQ:NVDA, ETR:NVD) which added 5.9% at about $103.
Tesla Inc (NASDAQ:TSLA) gained 5.5% while Microsoft Corp (NASDAQ:MSFT) added 2.9%. Meta Platforms Inc (NASDAQ:META, ETR:FB2A, SWX:FB) was up 2.8% and Apple Inc (NASDAQ:AAPL, ETR:APC), Google-owner Alphabet Inc (NASDAQ:GOOG) and Amazon.com Inc (NASDAQ:AMZN) all added 2.1%.
11:46am: Stocks rebounding
Stocks are rebounding after a sharp three-day sell-off, driven by renewed optimism over tariff negotiations," says Axel Rudolph, Senior Technical Analyst at online trading platform IG.
"Following three days of intense selling, global stock indices bounced back as investors took advantage of lower valuations and grew more optimistic about US tariff negotiations," Rudolph wrote Tuesday.
"Treasury Secretary Scott Bessent revealed that over 70 countries had been in touch with the White House to begin talks about tariffs. Nonetheless, tensions between the US and China remain elevated after Beijing vowed to 'fight to the end' in response to President Trump’s threat of imposing new 50% tariffs unless China rapidly removed its retaliatory measures."
11:21am: Small business sentiment drops
US small business sentiment declined for the third straight month in March, with the NFIB Small Business Optimism Index falling 3.3 points to 97.4 — below its historical average — as firms grew more concerned about the economic outlook, weakening sales expectations, and persistent labor shortages.
The share of businesses expecting better conditions fell sharply, while the percentage planning to raise prices reached a 12-month high, indicating inflation pressures may be building.
Hiring plans fell to their lowest level since April 2024, even as job openings and compensation pressures remained elevated.
Wells Fargo economists said the continued slide in sentiment signals growing unease among small firms despite optimism remaining above pre-election levels.
10.44am: China tariff call 'will happen' says Trump, as Korea deal outlined
Stock market sentiment remains bullish as the morning progreses, with the Nasdaq now up 4%, while the S&P 500 and Dow Jones are up 3.4% and 3.2%, respectively.
Not long before the US opening bell, Donald Trump published a social media post that suggested talks over a US trade deal with China "will happen".
The President said he had just come off a call where the "confines and probability of a great deal" had been agreed with South Korea, covering more than just tariffs.
The US President said his administration is "dealing with many other countries" but not yet China.
China "wants to make a deal, badly, but they don’t know how to get it started. We are waiting for their call. It will happen," he said.
Talks between Washington and other nations, as with Korea, are covering other areas "that are not covered by trade and tariffs, and getting them negotiated also," Trump said.
9.55am: Nasdaq leads the front as Wall Street comes swinging
US stock markets have come out swinging on Tuesday, with the tech-powered Nasdaq leading the way, jumping 3.5%.
The Dow Jones is up 1,260 points or 3.3%, while the S&P 500 has surged 3.4%.
Big risers on the Nasdaq include Applovin, up 10.4%, and Palantir, up 8.2%.
Semiconductor stocks are also higher, with Broadcom, Marvell, ARM Holdings and Nvidia all up between 6% and 8%.
All of the top 25 on the Nasdaq are in green.
8am: Dow Jones set to lead Wall Street rebound despite China vow 'to fight' tariffs
US investors woke with an apparent spring in their step on Tuesday despite an escalating tariff war of words between Washington and Beijing.
Futures for the Dow Jones were up 2.6%, with S&P 500 futures rising 2.2% and those for the Nasdaq 100 climbing 2.1%.
This followed a drastic start but a calmer finish on Wall Street at the start of the week, with the S&P having crashed below 4900 before Bill Ackman urged Trump to "pause his recently announced tariffs, or risk a self-induced, economic nuclear winter".
But the major indexes recovered from their initial declines of over 3% to close with the Nasdaq just above flat, the S&P cutting losses to just 0.2% and the Dow falling 0.9%.
Mid-session, President Trump threatened to impose, in his words, "additional tariffs on China of 50%" and also rejected an offer from the European Union for 'zero-for-zero' tariffs.
Nevertheless, Asian and European markets have rebounded this morning, even with China's commerce ministry saying that Trump's threat was "a mistake on top of a mistake", calling it "blackmail" and vowing to "fight it to the end".
On a phone call with China this morning, the EU Commission called for negotiation rather than escalation.
Japan's Nikkei closed 6% higher, its best day since last summer, after US Treasury Secretary Bessent said that "I would expect that Japan is going to get priority" on tariff talks. China's Hang Seng and Shanghai Composite both rose over 1.5%.
In Europe, the FTSE 100 was up 2.7% in London, while Germany's DAX and France's CAC have both rallied 2.5% to wipe out most of their losses from the prior session.
"In the end – this is not over yet," says market analyst Kenny Polcari at SlateStone Wealth, noting that US earnings season kicks off on Friday with the first of the big banks.
"The news out of DC will continue to dominate the headlines, but investors will once again begin to focus on the broader economic and earnings data and more importantly the earnings guidance that is about to hit us.
"And since there is still so much uncertainty concerning the guidance – we can expect the turbulence (thought to a lesser degree) to continue."
BlackRock Inc CEO Larry Fink has said the US is "probably" already in a recession and warned that stock markets could fall another 20% as the full effects of US tariffs and retaliations become clear, though he sees this as "more as a buying opportunity than a selling opportunity".
Polcari added that for investors looking for the famed V shaped recovery – "don’t go betting the ranch just yet – that is not happening".
In other corners of financial markets, bonds sold off yesterday, sending yields higher on both sides of the Atlantic. The US 2yr Treasury is now yielding 3.73%, up from 3.45%, while the 10yr is yielding 4.15%, up from 3.93%.
Oil – which had traded down to $58.95, rallied back a bit and is trading at $61. Gold fell below $3000 yesterday but has climbed back above that milestone. Bitcoin, which despite being touted for its disconnection to traditional markets, dropped from $85K to $75 over the past week but has climbed back up to $79.8k so far this week.