US Stock Futures Fall Following Surprise Tariff Announcement by Trump

US stock futures faced downward pressure late Wednesday after President Trump introduced unexpected reciprocal tariffs targeting several US trade partners. This surprise announcement was made during a “Liberation Day” event at the White House, catching markets off guard.

By 4:45 p.m. ET, futures for the S&P 500 had dropped 1.7%, Nasdaq 100 futures fell 2.5%, and Dow Jones Industrial Average futures decreased by 0.7%.

Before Trump’s announcement, stocks had shaken off early declines. The major indices made gains, with the S&P 500 rising 0.7%, the Dow increasing nearly 0.6%, or over 200 points, and the Nasdaq Composite climbing approximately 0.9%.

Both the Nasdaq and S&P 500 had dipped over 1% in early Wednesday trading.

Tesla played a significant role in the market reversal. Initially, Tesla shares dropped nearly 5% following weaker-than-expected first quarter deliveries. However, after a Politico report suggested that Musk might soon exit his government role, shares rebounded more than 5%. Amazon also saw a 2% rise after the New York Times revealed that the company made a last-minute bid for TikTok.

As the tariff announcement loomed, investors were eager for clarity, hoping for an end to the weeks of uncertainty that have disturbed stock markets.

The 10-year Treasury yield rose about 4 basis points to 4.19%, pulling away from a recent six-month low.

The details of these reciprocal duties remain vague, leaving markets in suspense over the potential economic impact and the risk of a trade war, as other nations could retaliate with their tariffs.

In economic news, March brought more private sector job additions than forecasted, according to fresh data from ADP. These promising figures pave the way for Friday’s release of the March jobs report, which will offer further insight into the US economy’s health amid trade war anxieties.