Stocks dropped after Trump announced new tariffs, impacting QQQ and SPY

From Nasdaq: 2025-04-02 18:37:00

Stocks took a hit in after-hours trading as President Trump announced new tariff plans, causing the Invesco QQQ Trust (QQQ) to drop -3.44% and the SPDR S&P 500 ETF (SPY) to plunge -2.45%. Baseline tariffs of 10% will be in effect from April 5, with the total tariff rate on Chinese imports now at 54%.

Stock indexes rebounded as US economic news exceeded expectations, with the labor market showing improvement and factory orders rising. Megacap tech stocks like Tesla and Amazon saw gains, with Tesla rising over +5% and Amazon up more than +2% after reports of business developments.

President Trump’s recent tariff actions have put pressure on the markets, with tariffs imposed on Canadian, Mexican, and Chinese goods. Additional tariffs are expected on April 2, with a 25% tariff on US auto imports starting April 3. The Fed is monitoring the situation, with a 16% chance of a rate cut after the May FOMC meeting.

European bond yields rose, with the German bund yield up +3.4 bp. The ECB is divided on interest rate cuts, with member Holzmann opposing a cut at the upcoming meeting. Swaps predict a 77% chance of a -25 bp rate cut by the ECB in April. US stock movers like Tesla, Caesars Entertainment, and GE Vernova saw positive gains, while food and beverage companies like Hershey and Mondelez International experienced losses.

Telecommunication stocks like Verizon, AT&T, and T-Mobile US closed down, while nCino and Deere & Co also saw declines. Earnings reports for 4/3 include Acuity Inc, Conagra Brands Inc, Lamb Weston Holdings Inc, and MSC Industrial Direct Co Inc. The author of the article did not hold any positions in the securities mentioned.



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