US equity futures tumbled late Wednesday after President Donald Trump unveiled sweeping new tariffs in a post-market speech, casting a shadow over earlier gains in the cash session. The S&P 500 and Nasdaq futures dropped as investors digested the implications of a 10% baseline tariff on all imports and steeper rates for dozens of trading partners. The timing of the announcement, just after the close, caught markets off balance and triggered a swift risk-off move. The tariff bombshell now looms large over Thursday’s open, reigniting fears of an extended trade war and fresh inflationary pressures.

Key Takeaways:

  • Futures Plunge After Trump’s Tariff Reveal: S&P 500 futures dropped 1.6% and Nasdaq futures sank 2.4% during President Trump’s Rose Garden speech, reversing earlier gains and signalling a sharp market downturn ahead. The sudden shift came after Trump confirmed a 10% baseline tariff on all US imports, with even higher rates targeted at over 60 countries, including 34% on China and 20% on the European Union. The tariffs are set to begin Saturday, with investors bracing for potential retaliation and wider economic fallout.
  • Wall Street Ends Higher Before After-Hours Slide: Prior to the tariff announcement, US equity markets finished Wednesday in the green after a volatile session. The Dow Jones Industrial Average rose 235.36 points, or 0.56%, to 42,225.32, while the S&P 500 gained 37.90 points, or 0.67%, to close at 5,670.97. The Nasdaq Composite climbed 151.16 points, or 0.87%, ending at 17,601.05. Tech and consumer discretionary names led the rebound, with Tesla and Amazon contributing significantly to the gains.
  • Tariff Fears Fuel Market Volatility and Uncertainty: Volatility remained elevated heading into Trump’s speech, with the CBOE Volatility Index (VIX) hovering at levels last seen in mid-March. Uncertainty surrounding the breadth and permanence of the tariff regime has kept investors on edge for weeks, complicating efforts to gauge the economic outlook. 
  • Private Payrolls Show Strength Despite Trade Risks: US private employers added 155,000 jobs in March, exceeding consensus expectations of 120,000 and marking a notable rebound from February’s upwardly revised 84,000 figure. Gains were broad-based, with professional and business services adding 57,000 positions, financial activities growing by 38,000, and manufacturing contributing 21,000. Leisure and hospitality added another 17,000 jobs, while trade and transportation saw a decline of 6,000. 
  • European Stocks Slip as Tariff Tensions Mount: European markets ended lower on Wednesday as traders positioned cautiously ahead of Trump’s announcement. The Stoxx 600 fell 0.6%, weighed down by a 2% drop in the healthcare sector amid fears of industry-specific tariffs. Germany’s DAX declined 0.7% to 22,375, while the FTSE 100 shed 0.30% to close at 8,608.48. France’s CAC 40 edged down 0.22% to 7,858.84, and Italy’s FTSE MIB lost 0.27% to finish at 38,454.19. Modest gains in retail and utilities offered limited support.
  • Asia-Pacific Markets Mixed as Tariff Risk Looms: Markets across Asia closed on diverging notes as investors awaited clarity on US trade policy. Japan’s Nikkei 225 rose 0.28% to 35,725.87, while the broader Topix index slipped 0.43% to 2,650.29. South Korea’s Kospi fell 0.62% to 2,505.86, with inflation data showing a year-over-year rise of 2.1% in March, up from 2% in February. Australia’s ASX 200 ticked up 0.12% to 7,934.5, while Hong Kong’s Hang Seng Index was flat at 23,205.15. Mainland China’s CSI 300 dipped 0.08% to 3,884.39, and India’s Nifty 50 climbed 0.45%.
  • Treasury Yields Rise Ahead of Policy Shake-Up: The yield on the 10-year US Treasury note rose 2.6 basis points to 4.182% on Wednesday, while the 2-year yield climbed 4.5 basis points to 3.908%, reflecting investor anticipation of policy changes and inflation risks tied to the new tariff regime. Stronger-than-expected private payroll growth added to upward pressure on yields, while lingering uncertainty over retaliatory measures and inflation added complexity to the Fed’s policy outlook.
  • Oil Edges Higher Despite Inventory Build and Tariff Uncertainty: Oil prices rose modestly as traders braced for a wave of new US tariffs likely to disrupt global demand. Brent crude gained 46 cents, or 0.6%, to settle at $74.95 a barrel, while West Texas Intermediate rose 51 cents, or 0.7%, to $71.71. Markets largely shrugged off a surprise 6.2 million barrel build in US crude inventories, according to EIA data. 

FX Today:

  • EUR/USD Bounces Off Key Support Zone: EUR/USD ended the session at 1.0848, advancing 0.52% as the pair rebounded sharply from its 200-day SMA near 1.0733. After dipping to 1.0780 earlier in the day, buyers returned in force to defend the broader uptrend that began in early March. The pair’s structure remains bullish, with rising 50-day and 100-day SMAs at 1.0601 and 1.0522, respectively. Immediate resistance remains in the 1.0900–1.0950 region, which previously capped gains. A close above that zone could extend the rally, while a move back toward 1.0730 would put the 1.0650 level back into focus.
  • GBP/USD Edges toward 1.3000 Breakout: GBP/USD closed higher at 1.2979, gaining 0.43% as momentum continued to build toward the psychologically important 1.3000 mark. The pair has maintained a steady uptrend since February lows near 1.2300, supported by strong technical alignment across key moving averages. Price now trades well above the 50-day SMA at 1.2704 and the 100-day at 1.2624, while the 200-day SMA at 1.2809 has turned into firm support. A decisive break above 1.3000 could trigger follow-through buying toward 1.3100 and beyond. Support remains at 1.2900, with downside risk contained unless price breaks below 1.2800.
  • USD/JPY Reclaims 150.00 Level Amid Recovery Effort: USD/JPY climbed 0.31% to settle at 150.07, retaking the key 150.00 threshold after spending the past week below it. The move reflects a broader recovery from March lows near 147.00, though the pair now faces stiff resistance in the 150.50–151.00 area, coinciding with the 50-day SMA at 150.95. The 100-day and 200-day SMAs remain above at 152.89 and 151.47, both sloping lower and signalling ongoing pressure. If USD/JPY can break above this resistance cluster, the broader uptrend may resume. Failure to hold above 149.00 would shift focus to 148.00 as the next support zone.
  • AUD/USD Eyes Breakout Above 100-Day SMA: AUD/USD closed at 0.6296, up 0.31% for the day as the pair extended its climb off the recent 0.6200 support zone. Price is now testing the 100-day SMA at 0.6319, a level that has contained upward momentum since early February. The 50-day SMA at 0.6295 is beginning to flatten, hinting at a shift in trend, though the 200-day SMA at 0.6504 still slopes downward. A clean break above 0.6319 would set up a potential move toward 0.6400, while support remains firm in the 0.6240–0.6250 region. Below that, 0.6150 stands as the next downside target.
  • Gold Extends Rally to Fresh Highs: Gold ended the session at $3,124.90, rising 0.37% after bouncing from an intraday low of $3,107.84. The metal climbed back toward the session high of $3,135.74, signalling renewed strength in its multi-month uptrend. Gold remains above all major SMAs, with the 50-day at $2,925.01, the 100-day at $2,787.00, and the 200-day at $2,662.29, each sloping upward. The breakout above the $3,100 mark appears to have flipped into support, with the next upside target near $3,150 and a potential stretch goal at $3,200. A break below $3,080 could spark deeper selling, but underlying momentum remains firmly in the bulls’ favour.

Market Movers:

  • Tesla Rallies Despite Drop in Deliveries: Tesla shares jumped 5.3% after Politico reported that President Trump told close contacts that Elon Musk may soon step down from his government advisory role. The move helped reverse earlier losses stemming from a 13% year-over-year drop in first-quarter vehicle deliveries.
  • Rivian Slides Despite Beating Delivery Forecasts: Shares of Rivian fell around 6% after the company reported first-quarter deliveries of 8,640 vehicles, down 36% from a year ago. Despite the sharp drop, the figure beat consensus estimates of 8,200 vehicles. 
  • BlackBerry Falls on Disappointing Revenue Outlook: BlackBerry shares dropped 9.1% after the company guided for fiscal Q1 revenue between $107 million and $115 million, missing analyst expectations of $124.6 million. 
  • Newsmax Collapses 77.5% After Frenzied Debut: Conservative news network Newsmax plummeted 77.5%, giving back much of its explosive early gains after listing on the NYSE. The stock had surged 179% in the prior session and jumped 700% on its first trading day.
  • CoreWeave Jumps as Rally Continues: AI infrastructure company CoreWeave extended its rebound with a 16.7% gain, building on a 42% jump in the previous session. The Nvidia-backed firm has recovered sharply following a rocky debut last week, as investor interest in AI-related stocks remains elevated.
  • Petco Surges After CEO Share Purchase: Petco stock soared 12.8% after a US SEC filing revealed that CEO Joel Anderson bought nearly 1.6 million shares. 

Markets ended Wednesday in positive territory, but the mood soured quickly after the close as President Trump’s sweeping tariff announcement sent futures tumbling. The S&P 500 and Nasdaq futures plunged following plans for a 10% baseline tariff on all imports and steeper penalties for dozens of countries. Investors now face heightened uncertainty as trade tensions reemerge as a central market risk, with inflation concerns and potential retaliation clouding the outlook. With non-farm payrolls and a speech from Fed Chair Powell still ahead this week, volatility is likely to remain elevated as traders brace for the next wave of policy developments.