Stocks tumbled after President Trump announced new tariffs on China

From Nasdaq: 2025-04-02 19:56:00

Stocks are plummeting in after-hours trading following President Trump’s new tariff announcements. The Invesco QQQ Trust (QQQ) is down -3.44%, and the SPDR S&P 500 ETF (SPY) has plunged -2.45%. Baseline tariffs of 10% will go into effect on April 5, with rates increasing on April 9, hitting China the hardest with a total tariff rate of 54%.

Stock indexes rebounded on Wednesday from early losses due to positive US economic news. The US labor market showed hiring growth, with the Mar ADP employment change rising +155,000. Megacap tech stocks like Tesla and Amazon rose, with Tesla leading gains in the Nasdaq 100. MBA mortgage applications fell -1.6% in the week ended March 28.

President Trump’s recent tariff implementations have caused stock market concerns, with tariffs on Canadian, Mexican, and Chinese goods. Additional sector-specific tariffs are expected on April 2. The implementation of a 25% tariff on US auto imports will take effect on April 3. The markets are awaiting key economic data and Fed Chair Powell’s speech on Friday.

T-notes initially rose on fears of a recession due to tariffs, with falling inflation expectations supporting them. European bond yields finished higher, and the swaps market is pricing in a 77% chance of a -25 bp rate cut by the ECB. US stock movers included Tesla, Caesars Entertainment, and GE Vernova leading gains, while defensive food and beverage companies saw losses.



Read more at Nasdaq: Stocks Plunge Late Wednesday on Tariff Announcement