Dow surges 2,900 points, S&P 500 posts biggest gain since 2008 on Trump tariff reversal: Live updates

The stock market mounted one of its biggest rallies in history after President Donald Trump announced a pause in some of his “reciprocal” tariffs on the globe, causing a market that has been under extreme pressure for the past week to explode higher.

The S&P 500 skyrocketed 9.52% to settle at 5,456.90 for its biggest one-day gain since 2008. For the broad market index, it was the third-biggest gain in post-WWII history. The Dow Jones Industrial Average advanced 2,962.86 points, or 7.87%, to close at 40,608.45 for its biggest percentage advance since March 2020. The Nasdaq Composite jumped 12.16% to end at 17,124.97, notching its largest one-day jump since January 2001 and second-best day ever.

About 30 billion shares traded hands, making it the heaviest volume day on Wall Street in history, according to records that go back 18 years.

“I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately,” Trump posted on his Truth Social. Trump, in the same post, said he was raising the tariff on China higher again to 125%.

Treasury Secretary Scott Bessent later clarified that all countries except China would return to the 10% baseline tariff rate, down from the higher rates that previously shocked the markets, as negotiations take place. The pause would not apply to sector tariffs, Bessent said.

Stocks that were heavily pressured by the trade war tensions led the comeback Wednesday afternoon. Apple and Nvidia soared more than 15% and nearly 19%, respectively. Walmart shares rallied 9.6%. Tesla shares climbed more than 22% on the back of the pause announcement.

“Given how depressed stock prices and sentiment had become, the 90-day pause is sparking a violent rebound, and delaying implementation certainly removes a giant overhang from the market,” said Adam Crisafulli, founder of Vital Knowledge. “But — tariffs are not going away. China’s tariff rate is now in triple digit territory, and who knows what happens in 90 days when this pause concludes.”

Prior to the announcement of the 90-day pause, investors were on edge over an escalating tit-for-tat between China and Trump. The European Union had also approved its first set of tariffs on the U.S. set to start April 15.

Nonetheless, stocks were trending higher into the afternoon. Traders were encouraged after Bessent stated he would be taking a lead negotiating role in tariff talks. President Trump also urged investors that now was “a great time to buy” shortly after the market open in a post on Truth Social.

Trump’s pause declaration went out at 1:18 p.m. ET when the Dow was about 350 points higher for the day. Seconds later, the 30-stock index surged more than 2,000 points.

In a press conference later in the afternoon, Trump said investors’ fears had gone overboard.

“I thought that people were jumping a little bit out of line. They were getting yippy, you know, they were getting a little bit yippy, a little bit afraid,” said Trump.

Anxiety around the rollout of the tariffs fueled a four-day rout for stocks. Over the course of the previous four trading sessions, the Dow lost more than 4,500 points, while the S&P 500 sustained a 12% fall. The Nasdaq Composite was down more than 13% during that period. These were losses not seen since the Covid-19 pandemic.

“This allows for at least a near-term rally, but I would not assume that the bottom has been put in place,” added Sam Stovall, chief investment strategist at CFRA Research. “Fool me once shame on you; fool me five times, shame on me.”

Tariffs on Mexico, Canada remain unchanged after Wednesday’s pause

The White House clarified late Wednesday afternoon that Mexico and Canada will not be affected by the tariff pause.

A White House official told CNBC that the existing U.S. tariffs on those countries — a 25% duty on goods not covered by the trilateral trade deal known as USMCA — will stay the same. Those two countries will not be subject to the 10% tariff that applies to most of the U.S.’ other trading partners. Mexico and Canada were also left out when the so-called reciprocal tariffs were originally announced last week.

— Jesse Pound, Kevin Breuninger

Stock market’s historic rally by the numbers

Wednesday’s stunning stock market rally is going into the history books.

The S&P 500‘s 9.52% one-day gain ranks as the third-biggest since World War II for the main stock market benchmark, according to FactSet.

For the 30-stock Dow Jones Industrial Average, it surged nearly 3,000 points, or 7.87%, scoring its biggest advance since March 2020. The 12.16% surge for the tech-heavy Nasdaq Composite marked its second-best day ever. 

— Yun Li

Wednesday marked highest trading volume on record

Around 30 billion shares were traded Wednesday amid a volatile trading session that saw the major averages soar to multiyear records.

This marked an all-time record for the heaviest volume day on Wall Street, according to Nasdaq and FactSet data that go back 18 years.

— Hakyung Kim

Stocks end Wednesday higher

U.S. stocks finished Wednesday’s session in the green. The major averages rallied after President Trump announced a 90-day tariff pause on some reciprocal tariffs.

The S&P 500 jumped 9.52%, its biggest one-day gain since 2008, to settle at 5,456.90.

The Dow Jones Industrial Average climbed 2,962.86 points, or 7.87%, to close at 40,608.45 and notch its largest advance since March 2020.

The Nasdaq Composite surged 12.16% to finish at 17,124.97, recording its biggest one-day rise since January 2001, as well as its second-best day ever.

— Hakyung Kim

Long-term bond prices are notching significant declines this week

The iShares 20+ Year Treasury Bond ETF (TLT), a proxy for long-term bond prices, is heading for an unprecedented loss.

TLT is on track for its third straight daily decline of at least 1.5%, according to Bespoke Investment Group. That has only happened three other times in history and TLT has never had a streak of four straight daily declines of more than 1.5%, the firm said.

TLT is down about 7% this week as the bond market continues to experience extreme volatility.

— Pia Singh

Cramer says stay invested even when there is despair

Jim Cramer said the market’s dramatic turnaround is exactly why investors need to stay in the market even when uncertainty and volatility are high. “If you want to help people make money, tell them to stay in the game when there’s total despair,” said Cramer, who had urged investors to “stay the course” throughout the four-day market skid.

— Kevin Stankiewicz

Recent market volatility mirrors that of 2008

President Trump’s tariffs policy has whipsawed stocks in recent sessions.

On Wednesday, the spread for the S&P 500 from the day’s low to high — or vice versa — climbed to 8.99 percentage points. On Tuesday, the spread was 7.05 percentage points, while it reached 8.11 percentage points on Monday.

The only other time with similar wildly volatile swings for the S&P 500 over consecutive days was in October 2008, when the benchmark swung 7 percentage points or more for four straight sessions.

— Robert Hum, Lisa Kailai Han

Trump: People were getting ‘yippy’ ahead of tariff pause; China wants ‘to make a deal’

President Trump said at an event at the White House that he thought his tariff plans had spooked people before he announced a pause this afternoon.

“I thought that people were jumping a little bit out of line. They were getting yippy, you know, they were getting a little bit yippy, a little bit afraid,” Trump said.

Trump also said “nothing is over yet” but indicated there was a willingness to make a deal by other countries, including China.

“President Xi’s a proud man. I know him very well. They don’t know quite how to go about it, but they’ll figure it out. They’re in the process of figuring it out, but they want to make a deal,” Trump said.

— Jesse Pound

U.S. crude oil rallies hard on Trump lowering tariffs for most countries

U.S. crude oil futures jumped more than 4%, booking their best day since October 2024 after President Trump announced a lower tariff rate for countries except China.

The U.S. benchmark rose $2.77, or 4.65%, to close at $62.35 per barrel, while global benchmark Brent was up $2.48, or 3.95%, to $65.30 per barrel.

U.S. crude hit an intraday low of $55.12 earlier in the session after Beijing announced tariffs of 84% on U.S. goods in response to Trump’s levies. China’s tariffs take effect April 10.

But the oil market turned around, swinging more than 13% from its low after Trump dramatically reversed course on his trade war. The president said lower tariff rates of 10% would apply to countries for 90 days with the exception of China.

— Spencer Kimball

The ‘only certainty’ is ‘good faith’ negotiations, Bessent says

When asked by a reporter if the market should take the pause as the last word on tariffs, Treasury Secretary Scott Bessent said negotiations with other countries will determine what comes next.

“The only certainty we can provide is that the U.S. is going to negotiate in good faith and we assume that our allies will, too,” Bessent said.

— Jesse Pound

Bitcoin surges 7% in broad market relief rally

Bitcoin spiked Wednesday afternoon after President Trump said on social media that he authorized a 90-day pause on tariffs.

The price of the flagship cryptocurrency was last higher by more than 7% at $82,522.00, according to Coin Metrics.

Bitcoin proxy stock MicroStrategy, recently rebranded to Strategy, rocketed 23% along with Robinhood, which climbed 21%. Crypto-focused exchange Coinbase jumped 19%.

Since last Thursday, bitcoin has been taking its cues from the equities market, with traders looking for any signs of clarity around the Trump administration’s tariff plans. Though it has generally shown less intraday volatility than equities, the cryptocurrency is down about the same amount as the major stock averages, roughly 5%, since then.

— Tanaya Macheel

Carnival on track for best day since 2020 as cruise stocks surge

Cruise stocks have surged since the announcement of the 90-day tariff pause, as a permanently lower tariff level could be a boost for the economically sensitive group.

Shares of Norwegian Cruise Line Holdings and Carnival Corp. are each up about 18% on the day. Royal Caribbean jumped more than 15%.

Carnival is on track for its best day since 2020.

— Jesse Pound

Bristol-Myers Squibb bucks market rally

There was one notable exception in the market rally following President Trump’s announcement of a 90-day pause on some tariffs: Bristol-Myers Squibb.

The biopharmaceutical stock was the sole loser in the entire S&P 500 on Wednesday afternoon. While the broad index soared more than 6%, Bristol-Myers Squibb slid around 0.4% shortly after 1:45 p.m. ET.

— Alex Harring

Expectations for rate cuts diminish after Trump tariff move

Traders quickly pared back their expectations for Federal Reserve interest rate cuts this year following President Trump’s announcement Wednesday to pause new tariffs.

The market is now looking for just three reductions this year, assuming quarter-percentage-point increments, according to the CME Group’s FedWatch gauge of futures contracts. That is down from as high as five cuts a few days ago.

June is still the likely starting point for the cuts, following a brief move when traders thought the Fed could go in May.

— Jeff Cox

Walmart stock pops 10%, heads for best day since 2020

Shares of Walmart surged nearly 11% Wednesday afternoon, shortly after President Trump announced a 90-day tariff pause for at least some countries.

Walmart’s Wednesday gain put it on pace for its best day since March 17, 2020, when it rose 11.71% in a single session.

— Lisa Kailai Han

Airline stocks climb in broader market rise

Airline stocks soared in afternoon trading Wednesday after Trump’s announcement.

Delta Air Lines, which reported first-quarter earnings earlier in the day, rose more than 22%, on pace for its best day since at least March 2020. United Airlines, meanwhile, was up more than 19%, on pace for its best day since May 2020.

Southwest Airlines climbed 12%, while JetBlue Airways and Alaska Air were both up more than 12%.

Travel site Expedia was up more than 15%.

— Michele Luhn

Bessent says there is now a 10% ‘temporary floor’ for tariffs; sector levies not included in pause

The 90-day pause on tariffs announced by President Trump has some other exceptions beyond China, which is seeing levies hiked to 125%.

The 10% universal tariff will still apply to most countries. Treasury Secretary Scott Bessent also clarified to reporters that sector-specific tariffs are not included in the pause.

“I think now the market understands that everything they saw last Wednesday was a ceiling, and now we have a 10% temporary floor,” Bessent said.

— Jesse Pound

Megacap tech stocks surge

Megacap tech stocks rallied Wednesday afternoon as investors celebrated President Trump’s announcement of a 90-day pause on some tariffs.

Tesla and Nvidia surged more than 14% and 13%, respectively. Apple popped more than 11%, while Amazon surged nearly 9%.

All seven members of the “Magnificent Seven” tracked for big gains, with CNBC’s tracker of the group soaring more than 11%. Investors had previously been concerned about how the taxes would affect costs for the companies that produce products and use parts made in foreign countries.

— Alex Harring

Bill Ackman thanks Trump administration for 90-day pause

Billionaire investor Bill Ackman, an outspoken supporter of Trump who in recent days had criticized the president for his stringent tariff policy, thanked the administration for a 90-day pause on more severe tariffs.

“Thank you on behalf of all Americans,” Ackman wrote on social media platform X, at 1:32 p.m. ET. Shortly after, he added, “[Treasury Secretary Scott Bessent] rocks!”

— Sarah Min

VIX plunges 15 points after tariff pause

The Cboe Volatility Index, known as the VIX, dropped 15 points to 37.2 after news of a 90-day tariff pause.

The VIX, which tracks the 30-day implied volatility of the S&P 500, measures the level of fear on Wall Street. Earlier this week, the VIX hit a high of 60.13, its highest level since August.

— Yun Li

Pause sets stage for ‘bespoke’ negotiations, Bessent says

The 90-day pause on the so-called reciprocal tariffs will allow for the U.S. to negotiate with individual countries, Treasury Secretary Scott Bessent told reporters. President Trump will be personally involved in those discussions, he added.

“Each one of these is going to be separate, bespoke negotiation,” Bessent said.

— Jesse Pound

Stocks making the biggest moves midday

Check out the companies making headlines in midday trading:

• Apple — Shares rebounded more than 5% on Wednesday after several days of selling pressure on the iPhone maker. Apple manufactures much of its products in China, which has been a key worry for investors in recent days in light of President Trump’s 104% tariff on Beijing that took effect on Wednesday.
• Walmart — The retail stock gained 5% after Chief Financial Officer John Rainey said in an investor presentation that Walmart emerges with greater share when it leans into periods of economic uncertainty. The company scrapped its first-quarter operating guidance but left its full-year guidance unchanged.
• Capri — Shares rallied more than 10.3% after The Wall Street Journal reported that a deal for Capri to sell Versace to Prada is at risk of collapsing.

Read the full list here.

— Brian Evans

10-year Treasury auction met with strong demand

The U.S. government’s monthly auction of 10-year notes this afternoon was met with solid demand, easing fears that American debt might have lost its luster amid Trump’s intensifying trade war.

The $39 billion auction was awarded at 4.435%. Indirect bidders, a group that includes foreign central banks, took a record 87.9% of the Treasury’s auction, according to BMO Capital Markets.

The 10-year Treasury note yield was last up 14 basis points to 4.40% after climbing overnight above 4.51%.

— Yun Li

Capri stock pops 5% as Prada’s talk to acquire Versace collapses, The Wall Street Journal reports

Shares of Capri Holdings popped 5% on Wednesday following a report from The Wall Street Journal that Prada’s talks of acquiring Versace from the fashion conglomerate were at risk of collapsing.

The Wall Street Journal cited people familiar with the matter.

Prada currently has a tentative deal to acquire Versace for around $1.4 billion, a deal that was set to be announced as early as Thursday morning. But the effect of tariffs and market whiplash have posed headwinds, and as of Wednesday morning, the likelihood of the deal going through was still around 50%.

Shares of Capri have tumbled 35% year to date.

— Adrian van Hauwermeiren, Lisa Kailai Han

100 stocks in the S&P 500 trade at new 52-week lows

During Wednesday’s volatile trading session, 100 stocks in the S&P 500 traded at new 52-week lows.

Tickers that hit this milestone included:

• Comcast trading at lows not seen since November 2022
• Match Group trading at all-time lows back to its initial public offering in November 2015
• Ford trading at lows not seen since January 2021
• Lowe’s trading at lows not seen since December 2023
• Chevron trading at lows not seen since July 2022
• Bank of America trading at lows not seen since February 2024
• Pfizer trading at lows not seen since July 2012
• Stanley Black & Decker trading at lows not seen since October 2011
• Simon Property trading at lows not seen since February 2024
• UPS trading at lows not seen since May 2020

— Christopher Hayes, Lisa Kailai Han

Megacap tech shares move higher

Big technology stocks broadly rose Wednesday, powering the Nasdaq Composite’s outperformance.

Chipmaker Nvidia advanced 3.2%, while Tesla jumped more than 4%. Microsoft added 2.5%, while Apple climbed 4.2%.

— Hakyung Kim

Imports to U.S. could fall at least 20% in second half of 2025 from year ago, Hackett Associates says

Imports to the U.S. in the second half of this year could fall at least 20% from the second half of 2024, according to Ben Hackett, founder of Hackett Associates, which produces the Global Port Tracker for industry trade group National Retail Federation.

In a press release, Hackett said retailers have been bringing goods into the U.S. at an elevated pace in recent months. However, the depth of the slowdown he is predicting means 2025 cargo volume will be down 15% from a year ago.

Hackett warned that the events are fluid and forecasts could shift. But in the wake of the tariffs, he trimmed his monthly estimates considerably. For example, he predicts May will end 19 consecutive months of year-over-year cargo volume growth, with a 20.5% drop. Prior to the tariffs, volume was seen up 2.8% year over year.

— Christina Cheddar Berk

‘Waters are getting choppier’ for pharma stocks, BMO says

Last week’s tariff plan excluded pharmaceuticals, but the reprieve looks to be temporary. President Trump on Tuesday evening said a “major” tariff was in the works to encourage drug companies to move their operations to the U.S. Medical products have been exempt from tariffs under longstanding trade agreements.

“Put on your life vest, as the waters are getting choppier,” BMO Capital Markets analyst Evan David Seigerman wrote in a note to clients. Indeed, shares of many pharma stocks were trading lower Wednesday, with Pfizer, Eli Lilly and Merck all down around 4%.

“Global supply chains are complex, with Pharma among the most — it’s not as simple as moving where someone screws in little screws to make an iPhone. From raw ingredients, to [active pharmaceutical ingredients] and fill/finish, the global Pharma supply chain is unlikely to significantly change at the whim of this administration,” Seigerman wrote.

He added that the rhetoric also ignores that the industry has “meaningful” domestic operations already, and is unlikely to reduce drug prices.

— Christina Cheddar Berk

Gold continues to climb higher

Gold prices jumped Wednesday as volatility continued to roil the markets and lead to a weaker dollar.

Spot gold prices advanced 3.2% at $3,079.15. Gold futures also gained 3.3% at $3,087.90.

— Hakyung Kim

Delta shares rise after earnings top expectations

Delta Air Lines shares jumped more than 5% Wednesday following the company’s latest earnings report.

The air carrier posted 46 cents in adjusted earnings per share for the first quarter of 2025. That topped the consensus forecast of 38 cents from analysts polled by LSEG.

But Delta cut its growth plans and said it could not reaffirm 2025 financial guidance, citing a hit to demand from President Trump’s tariffs. CEO Ed Bastian called Trump’s levies “the wrong approach.”

Delta cut its first-quarter outlook last month due to weak bookings.

— Alex Harring, Leslie Josephs

Dollar index falls further

The dollar index weakened 0.9% Wednesday.

The greenback declined more than 1% against both the yen and the Swiss franc, which are both viewed as safe-haven currencies. The euro also strengthened 1.1% versus the dollar.

Week to date, the dollar index is down around 1% and is on pace for its third straight weekly loss.

— Hakyung Kim

U.S. crude oil tumbles more than 7% on Trump’s escalating trade war

U.S. crude oil fell nearly 7.5% as the world descends into a trade war, with the U.S. and China slapping each other with steep tariffs.

The U.S. benchmark hit an intraday low of $55.12 per barrel while global benchmark Brent tumbled to $58.40 at its lowest point during the session. Oil prices have now fallen more than 20% since last Wednesday when Trump first announced his reciprocal tariff plan.

— Spencer Kimball

Kashkari sees tariffs keeping the Fed on hold in either direction

Minneapolis Federal Reserve President Neel Kashkari said Wednesday that the potential for tariffs to increase inflation and slow economic growth makes adjusting interest rates less likely.

In an essay on the central bank district’s website, Kashkari said President Trump’s higher-than-expected levies likely will raise prices, slow growth and increase unemployment. Faced with those challenges, he said the Fed’s priority likely would be fighting inflation.

“In my view, the hurdle to change the federal funds rate one way or the other has increased due to the tariffs,” he wrote. “Given the paramount importance of keeping long-run inflation expectations anchored and the likely boost to near-term inflation from tariffs, the bar for cutting rates even in the face of a weakening economy and potentially increased unemployment is higher.”

Conversely, he said an increase also is less likely given the effect of tariffs on demand.

“As recent weeks have reminded us, nothing is certain and no monetary policy response, up or down, should be completely off the table,” Kashkari said.

— Jeff Cox

“BE COOL!,” Trump says

President Trump encouraged people to remain calm as his controversial tariff policy sparked a global trade war and battered the U.S. stock market.

“BE COOL!,” Trump wrote Wednesday morning on social media platform Truth Social.

“Everything is going to work out well,” he wrote. “The USA will be bigger and better than ever before!”

Minutes later, he wrote, “THIS IS A GREAT TIME TO BUY!!!”

— Alex Harring

S&P 500, Dow open lower

The S&P 500 and Dow Jones Industrial Average kicked off Wednesday’s trading session in negative territory.

The broad market index fell slightly, while the Dow dropped 134 points, or 0.4%. The tech-heavy Nasdaq Composite outperformed, rising 0.5%.

— Hakyung Kim

China ETFs rise in the premarket

China stocks jumped in the premarket, following the latest escalation of trade tensions between Beijing and the U.S.

The iShares China Large-Cap ETF (FXI) and KraneShares CSI China Internet ETF (KWEB) rose more than 2% each. The iShares MSCI China ETF (MCHI) gained more than 1%.

Many of the companies that make up the exchange-traded funds sell primarily to domestic consumers, meaning they have less of a reliance on overseas markets.

Shares of Alibaba gained about 1%, while JD.com shares were slightly higher.

— Sarah Min

Jamie Dimon says recession is a likely outcome from Trump’s tariffs

JPMorgan Chase CEO Jamie Dimon said a U.S. recession is a likely outcome as President Trump’s tariffs continue to roil financial markets.

“I think probably that’s a likely outcome, because markets, I mean, when you see a 2000-point decline [in the Dow Jones Industrial Average], it sort of feeds on itself, doesn’t it,” Dimon said on Fox Business’ “Mornings With Maria” show. “It makes you feel like you’re losing money in your 401(k), you’re losing money in your pension. You’ve got to cut back.”

JPMorgan economists expect U.S. gross domestic product to contract 0.3% this year, a mild recessionary call but coming after a strong year for growth.

— Yun Li, Jeff Cox

Pharma stocks tumble after Trump threatens ‘major tariff’ on pharmaceuticals coming soon

Shares of key pharmaceutical giants fell in the premarket Wednesday after President Trump said Tuesday evening that the U.S. is going to announce “very shortly a major tariff on pharmaceuticals.”

Pfizer and AbbVie shares each declined more than 4% in early trading, while shares of Merck dropped almost 4%. Eli Lilly shares pulled back more than 3%.

— Sean Conlon, Erin Doherty

Walmart, Eli Lilly, Target drop in premarket trading

Check out the companies making headlines before the bell:

• Pharmaceutical stocks — Shares of U.S. companies in the pharmaceutical industry fell after President Trump said late Tuesday that he is going to announce “very shortly a major tariff on pharmaceuticals.” Pfizer and Merck shares each dropped more than 4%, while Eli Lilly shed more than 3%.
• Walmart — Shares of the big-box retailer shed 1% after Walmart pulled its outlook for operating income in the first quarter, saying it wants to “maintain flexibility to invest in price as tariffs are implemented.” The company still expects sales to grow 3% to 4% during the three-month period.
• Retailers — Many retail stocks fell before market open amid uncertainty about the potential effect of sweeping tariffs on trade partners and after China announced retaliatory tariffs on U.S. goods. Target, Best Buy and Home Depot shares each slid about 3%.

For the full list, read here.

— Pia Singh

Small-cap ETF slides before the bell

A fund tracking small-cap stocks pulled back in Wednesday premarket trading, signaling the group could be in for another rough day.

The iShares Russell 2000 ETF (IWM), which tracks the small cap-focused Russell 2000 index, fell 1.8% as of shortly before 7:30 a.m. ET. Stock futures tied to other major averages were also down.

The Russell 2000 has fallen for the past four sessions, amounting to a one-week slide of 12.5%. Investors have closely watched the index since it fell into bear market territory last week amid the fallout from President Trump’s tariff announcement.

— Alex Harring

Walmart shares fall after retailer pulls outlook on tariff uncertainty

Walmart shares fell 1.5% in the premarket after the big-box retailer pulled its first-quarter operating income forecast because of Trump’s tariffs.

The big-box retailer said it wants to “maintain flexibility to invest in price as tariffs are implemented.” It did not provide a new range for first-quarter operating income. It had projected an increase of 0.5% to 2.0% to adjusted operating income in the fiscal first quarter.

The decision comes the same day Trump’s tariffs took effect on major manufacturing hubs for Walmart. At 12:01 a.m. ET, duties took hold, including a 104% tariff on imports from China and a 46% levy on imports from Vietnam.

— Melissa Repko, Sarah Min

China hits back with 84% tariff on U.S. goods

China announced a retaliatory tariff on U.S. goods of 84% after a 104% U.S. levy on Chinese imports went into effect midnight. The news sent stock futures tumbling.

— Fred Imbert

Big Treasury yield swings are a major red flag, bond trader warns

The benchmark 10-year Treasury note yield surged 12 basis points to 4.374% on Wednesday after starting the week at around 4%. This kind of move is raising alarm among market watchers, especially as investors try to navigate the current global trade minefield.

“Ultimately, if the US Treasury market doesn’t function, we have issues,” wrote Gregory Faranello, head of U.S. rates at AmeriVet Securities. “You can’t have 10-year yields move over 60-basis points in the blink of an eye and think you have a functioning market. Would love to think there’s an adult in the room somewhere. This is a different type of crisis. A very complicated one.”

“In some ways it all looks easy on paper until it’s not. In 2008 we had a Libor crisis where banks didn’t trust each other and lend. Now we’re dealing with a different dynamic where countries won’t trade with each other. Ultimately, the country gets harmed,” he added. “Over some trade deficits?”

— Fred Imbert

European markets open lower

The pan-European Stoxx 600 was 2.7% lower shortly after the opening bell on Wednesday, with all regional sectors and major bourses firmly in negative territory.

Health care, autos and mining stocks led losses in Europe, with sector indexes down 4.4%, 2.5% and 2.9%, respectively.

Autos and mining companies are heavily exposed to U.S. President Trump’s reciprocal tariffs, with vehicles being one of the European Union’s biggest exports to the U.S. and China being hit with net total tariffs of 104%. On Tuesday, Trump said “a major tariff on pharmaceuticals” would soon be imposed.

— Chloe Taylor

S&P 500 is inches from bear market territory

The S&P 500’s 1.6% decline during regular trading on Tuesday has brought the broad market index nearly 19% off its February closing record, which is just inches away from a bear market.

A decline of 20% from a previous record high constitutes a bear market on Wall Street. The index needs to slip a further 1.35% to officially enter a bear market.

— Brian Evans

Stock futures slide

Stock futures fell on Tuesday as investors prepare for President Donald Trump’s tariffs on 86 countries, including China, that are set to take effect at midnight.

Futures tied to the Dow Jones Industrial Average fell 284 points, or 0.74%. Nasdaq-100 futures declined 0.88%, while S&P 500 futures pulled back 0.89%.

— Brian Evans