Trump's China tariffs send stocks tumbling as 'FOMO' rally fades, S&P 500 closes at lowest level in a year

Key Points

  • Stocks initially rallied on hopes of tariff negotiations but ended the day in the red.
  • The S&P 500 closed at its lowest level since April 19, 2024, after a volatile trading session.
  • Tariff headlines continued to dominate market movements, with the White House confirming an increase in tariffs on China.

Summary

Tuesday's trading session on Wall Street was marked by significant volatility as initial optimism about tariff negotiations quickly turned sour. Early in the day, stocks surged with the major indexes up over 4% at their peak, driven by hopes of a 'Turnaround Tuesday' rally. However, by the close, the S&P 500 (^GSPC) had fallen 1.6%, the Nasdaq (^IXIC) dropped over 2.1%, and the Dow Jones (^DJI) lost 0.8%. The market's mood shifted after the White House confirmed that tariffs on China would increase to 104% at midnight on Wednesday, leading to a rapid erasure of all gains and further declines. This week has been characterized by seesaw market action, with investors reacting to every tariff-related headline. The S&P 500 experienced its worst week since March 2020, losing over 10% in the previous sessions. The volatility extended beyond stocks, affecting Treasury yields, with the 10-year yield (^TNX) rising significantly. The market's direction remains heavily influenced by tariff negotiations, with experts calling for quick evidence of progress to stabilize the markets.

yahoo
April 8, 2025
Stocks
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