Wall Street rally fizzles as tariff deadline approaches
Shreedhar Rathi | Apr 09, 2025, 00:17 IST
( Image credit : AP )
U.S. markets experienced a volatile Tuesday, initially rebounding on trade negotiation hopes before anxieties resurfaced ahead of President Trump's tariff deadline. The S&P 500 and Nasdaq posted modest gains, while the Dow closed higher but well off its session peak. Investor caution prevailed amid trade uncertainty, impacting energy markets and specific stocks like Apple, signaling vulnerability to further market swings.
A sharp rebound in U.S. markets lost momentum Tuesday afternoon as investors grew uneasy ahead of President Donald Trump’s tariff deadline, with no clear resolution on trade talks in sight.
The S&P 500 closed up just 0.4%, while the Nasdaq Composite posted the same modest gain. The Dow Jones Industrial Average ended the day 283 points higher, or 0.7%, after surging nearly 3.9% earlier in the session. The morning rally had been driven by optimism surrounding potential negotiations that might ease recently imposed trade barriers.
Market confidence was initially buoyed by positive messaging from the White House, including reports of active discussions with major trading partners and interest from dozens of countries in tariff negotiations. However, enthusiasm waned as it became clear that no agreements were imminent before the midnight deadline, when tariffs on Chinese goods are set to spike to a cumulative 104%.
Tuesday's reversal extended a period of intense volatility in the markets. On Monday, trading volumes hit an 18-year high, with over 29 billion shares exchanged. The Dow dropped more than 1,700 points at one point during that session and ended down 349 points, or 0.9%. The S&P 500 briefly entered bear market territory before recovering slightly.
Investor nerves remained frayed amid the uncertainty, with the CBOE Volatility Index (VIX) hovering around 50, after spiking to 60 on Monday—levels last seen during the 2020 pandemic-induced market panic.
Energy markets also struggled. U.S. crude oil prices dropped 1.3% to $59.91 per barrel, while Brent crude fell 1.6% to $63.16. Both benchmarks have lost more than 15% since the administration’s latest tariff announcement last week, raising concerns over a broader economic slowdown.
Among individual stocks, Apple remained under pressure due to its exposure to China. After gaining more than 4% early in the day, shares reversed course to close down 3%, marking a nearly 20% drop over the past three trading sessions.
Despite Tuesday’s initial gains, investors appear cautious, with market participants signaling that long-term recovery will depend on more predictable trade policies. Uncertainty over tariffs continues to cloud the outlook, leaving markets vulnerable to further swings in the days ahead.
The S&P 500 closed up just 0.4%, while the Nasdaq Composite posted the same modest gain. The Dow Jones Industrial Average ended the day 283 points higher, or 0.7%, after surging nearly 3.9% earlier in the session. The morning rally had been driven by optimism surrounding potential negotiations that might ease recently imposed trade barriers.
Market confidence was initially buoyed by positive messaging from the White House, including reports of active discussions with major trading partners and interest from dozens of countries in tariff negotiations. However, enthusiasm waned as it became clear that no agreements were imminent before the midnight deadline, when tariffs on Chinese goods are set to spike to a cumulative 104%.
Tuesday's reversal extended a period of intense volatility in the markets. On Monday, trading volumes hit an 18-year high, with over 29 billion shares exchanged. The Dow dropped more than 1,700 points at one point during that session and ended down 349 points, or 0.9%. The S&P 500 briefly entered bear market territory before recovering slightly.
Investor nerves remained frayed amid the uncertainty, with the CBOE Volatility Index (VIX) hovering around 50, after spiking to 60 on Monday—levels last seen during the 2020 pandemic-induced market panic.
Energy markets also struggled. U.S. crude oil prices dropped 1.3% to $59.91 per barrel, while Brent crude fell 1.6% to $63.16. Both benchmarks have lost more than 15% since the administration’s latest tariff announcement last week, raising concerns over a broader economic slowdown.
Among individual stocks, Apple remained under pressure due to its exposure to China. After gaining more than 4% early in the day, shares reversed course to close down 3%, marking a nearly 20% drop over the past three trading sessions.
Despite Tuesday’s initial gains, investors appear cautious, with market participants signaling that long-term recovery will depend on more predictable trade policies. Uncertainty over tariffs continues to cloud the outlook, leaving markets vulnerable to further swings in the days ahead.