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U.S. market indexes climbed slightly Wednesday morning despite American tariffs kicking in and retaliatory measures abroad.
The tech-heavy Nasdaq was up 211 points (1.3%) as of 10:50 a.m. E.T. The Dow Jones Industrial Average rose 41 points (0.1%), while the S&P climbed 25 points (0.5%).
The uptick came despite retaliatory tariffs announced by China and the European Union on U.S. imports. The total levy implemented by Beijing, set to go into effect at noon on Wednesday, comes out to 84%. The E.U. voted Wednesday morning to place tariffs on U.S. imports, including manufactured goods and farm products such as soybeans, according to the New York Times. The tariffs would range from 10 to 25% and would go into effect April 15.
Stocks suffered a steep sell-off Tuesday, when the S&P 500 fell 1.6%, the Dow Jones Industrial Average dropped nearly 1%, and the Nasdaq Composite slid 2.1%.
Early futures Wednesday had shown the Nasdaq down as much 2.15% premarket. Shortly after 8 a.m., futures tied to the Dow Jones Industrial Average were down 747 points, or almost 2%. S&P 500 futures were down 1.8%, and Nasdaq futures were down 1.7%
Gold jumped 3%, a typical sign of investors moving to lower-risk assets.
Tariffs hit tech where it hurts
President Donald Trump administration’s confirmed Wednesday that 104% tariffs on select Chinese goods — including electric vehicles and high-tech imports — took effect at midnight. The move has reignited fears of a trade war, with investors bracing for potential retaliation from Beijing and knock-on effects across global supply chains.
The White House’s reaffirmation Tuesday evening of the sweeping levies rattled already skittish markets.
“BE COOL!” Trump write on his Truth Social platform Wednesday morning. “Everything is going to work out well. The USA will be bigger and better than ever before!”
Bonds are getting crushed
A dramatic sell-off in government bonds pushed the 30-year yield above 4.75%, its highest level since February, as fears mounted that tariffs could fuel inflation rather than cool the economy.
“If Trump’s secret agenda is to crash the stock market to bring down long-term interest rates, the plan already failed,” economist Peter Schiff posted on X. “The plan to crash the stock market is now crashing the bond market too.”
Eyes on economic data and Delta Air Lines earnings
A report from the U.S. Census Bureau on February’s wholesale trade sales and inventories is due Wednesday, which could provide clues about inventory buildups and downstream economic softness. Any signs of weakening wholesale activity could reinforce concerns about the economy’s resilience in the face of rising geopolitical tensions and delayed Fed rate cuts.
Delta Air Lines (DAL+5.55%) reported its earnings Wednesday, offering a window into both consumer and corporate travel demand. The airline is seen as an early bellwether for first-quarter results, and investors will be watching closely for commentary on international bookings and business travel recovery. While Delta stock looked set to open in the green, up 2% in early premarket trading, the stock remains down almost 40% year-to-date.
