Dow rises over 200 points amid Wall Street’s volatility ahead of Trump’s imminent tariff announcements.
In Short
Stocks rose on Wednesday as traders anticipated President Trump’s new tariffs, with the S&P 500 up 0.67% and Tesla shares gaining 5.3%.
There is uncertainty over the tariffs’ details and their economic impact, leading to mixed market sentiments.
Stocks gained on Wednesday as traders prepared for President Trump’s imminent tariff rollout.
The S&P 500 rose 0.67% to 5,670.97, and the Nasdaq Composite increased by 0.87% to 17,601.05. The Dow Jones Industrial Average saw a rise of 235.36 points, or 0.56%, ending at 42,225.32. Earlier in the day, the S&P 500 had dipped more than 1%.
Tesla shares improved by 5.3% following reports that Elon Musk intends to step down from his advisory role.
The increases came ahead of the expected introduction of reciprocal tariffs by the Trump administration, intended to apply to all countries. The levies will be effective immediately after the announcement scheduled for later today.
Specific details about the tariffs remain unclear, leading to concerns about which sectors will be affected and the potential economic slowdown. The administration has yet to determine exact tariff levels, with various options still under consideration.
There are mixed sentiments in the market, with some wanting lower tariffs than previously indicated, which were suggested to be around 20% on most imports.
Market reactions to Trump’s tariff announcements have led to recent fluctuations, with the broad market index down five of the last six weeks. Despite the current sell-off, some investors believe that the decline may be excessive.
