S&P 500 futures (ES=F) jumped roughly 0.9%. Futures attached to the Dow Jones Industrial Average (YM=F) gained 0.7%, while contracts on the tech-heavy Nasdaq 100 (NQ=F) soared 1%.
Traders received fresh signals on Trump’s next moves in the trade war and beyond after he addressed Congress Tuesday night. The President acknowledged the current state of economic discomfort by saying, “There’ll be a little disturbance, but we’re OK with that. It won’t be much.”
The S&P 500 erased its post-election gains, and the Dow shed more than 650 points after Trump implemented delayed 25% tariffs on Canada and Mexico, and doubled duties on China.
The affected countries responded with countermeasures. Canada laid out tariffs on billions of dollar of US products, while China targeted US farm goods new duties from Monday. Mexico said it will lay out its retaliation on Sunday.
On Wednesday, the ADP National Employment Report will offer insight into private payroll growth, and Abercrombie & Fitch (ANF) is set to report earnings.
LIVE6 updates
17 mins ago
Lutnick hints tariffs on Canada, Mexico could be lowered on Wednesday
In a sign of relief for Detroit automakers, Commerce Secretary Howard Lutnick suggested the Trump administration could scale down new tariffs on Canada and Mexico.
Lutnick said on Tuesday that the president’s team is looking at the 2020 US-Mexico-Canada Agreement — a Trump 1.0 deal — as a way to meet “somewhere in the middle”. An announcement could come on Wednesday, he said.
Sources told Reuters that talks between the three countries are focusing on exemptions under USMCA’s rules of origin, which are largely aimed at auto companies.
CK Hutchinson soars as Li Ka-shing escapes Trump’s glare
There’s a flipside to the selling spurred by Trump’s rapid-fire shifts — the boost to individual stocks likely to see some benefit.
In Li Ka-shing’s case, shares of his company CK Hutchinson (CKHUY, 0001.HK) surged in Hong Kong after the 96-year-old billionaire turned a Trump threat into one of the deals of his lifetime.
Gold pulls back from record high as trade war fuels demand for haven assets
Gold (GC=F) has reversed its upward trajectory after gaining over 2% in the past two sessions and approaching its record high. This comes as volatility from President Donald Trump’s tariff actions sparks increased demand for safe-haven assets.
Trump preps markets for ‘a little disturbance’ in first address to Congress
President Donald Trump doubled down on ambitious tariff plans in an address to Congress on Tuesday night. In a wide-ranging speech, Trump referenced the current state of economic insecurity, proclaiming, “There’ll be a little disturbance, but we’re OK with that. It won’t be much.”
President Trump touched on tariffs, taxes, Ukraine and the CHIPS act during his address to a joint session of Congress, with Wall Street hoping for relief after two days of stock losses led the S&P 500 to it’s lowest close since the election.
Chinese stocks climb as growth target sparks optimism for stimulus measures
Chinese stocks rose Wednesday as the country’s top leaders kicked off annual parliamentary meetings. They revealed key economic targets, fueling expectations for additional stimulus measures.
Oil falls as tariffs lower trust, OPEC+ raise crude production
Oil prices dropped for a third consecutive session on Wednesday as key producers plan to increase output in April, coupled with concerns that US tariffs on Canada, Mexico, and China could slow economic growth and fuel demand, dampening investor sentiment.
