Investors vacillate between fear and hope amid US President's big announcements
After a turbulent trading environment, US stock markets ended the day in the green, with Wall Street posting a strong recovery despite a turbulent start. The bulk of the momentum came in the final hours of the session, as investors rushed to take positions ahead of President Donald Trump's big economic announcement.
Intrigue until the last minute
Trump's address, which was made after the end of trading, caused a stormy reaction in the futures market. Futures on the S&P 500 and Nasdaq initially showed growth, but then sharply went into the negative against the backdrop of the announcement of large-scale tariff initiatives. At the time of the president's speech, futures on the S&P 500 lost 1.6%, and Nasdaq - 2.4%.
This sharp drop signals that traders are expecting a difficult session on Thursday, when the markets reopen - and will already begin to play out the effect of the new tariffs.
Trump vs. the World: the tariff map is exposed
The new tariff offensive was made decisively and without looking back. The president announced a 10-percent base rate on all imports, but at the same time introduced significantly higher duties for a number of countries with which the United States conducts the largest volume of trade.
China has become the main target of pressure - its exports will be subject to a 34-percent levy. Japan faced 24%, South Korea 25%, and Vietnam a staggering 46%. Even the EU didn't get away scot-free, with a 20% tariff.
Indices closed higher, but more uncertainty lies ahead
Before President Donald Trump took to the mic, the stock market sentiment remained upbeat. The Dow Jones gained 235 points, or 0.56%, to 42,225.32. The S&P 500 gained 0.67% to 5,670.97, and the Nasdaq was the strongest performer among the three, up 0.87% to close at 17,601.05.
Tech Takes the Floor
One of the main drivers of growth was big tech, which once again proved its ability to lift the market mood. Tesla was particularly notable, with its shares soaring 5.3% despite reporting a 13% decline in electric vehicle deliveries in the first quarter.
The catalyst for the rally was information published by Politico: according to the publication, Trump allegedly hinted to his inner circle that Elon Musk, a long-time ally and influential figure in business circles, may soon leave some of his government roles. Although it is unclear what exactly.
This unexpected turn neutralized the negative from the corporate statistics for a while and breathed life into Tesla shares.
Amazon Bets on TikTok
Among other stars of the tech sector, Amazon stood out, with its shares rising 2%. Investors were encouraged by rumors that the company intends to strengthen its presence in the short-form video market by betting on the popular TikTok platform. This move could strengthen its position in digital advertising and attract a new young audience.
AI startup in the spotlight, media giant in steep decline
Among the fresh players on the stock exchange, CoreWeave, an AI startup, stood out, having overcome a difficult start, and continued its confident ascent. Its shares added 16.7% during the session, expanding the momentum that began the day before.
A completely different scenario played out around Newsmax. After an impressive start and triple-digit growth in the first days of trading, the media company's shares plummeted, losing a staggering 77.5% in one day. Such volatility is rare even in the era of speculative IT startups.
The dollar and bonds are losing ground
The American currency weakened to its lowest level in the last six months, simultaneously with a drop in the yield on Treasury bonds. Investors began to rapidly move into more stable assets, reacting to the White House's toughening trade rhetoric. The new tariffs effectively became the largest tax burden on imports in the last hundred years, which could not help but shake up financial markets.
Selling Wave: Asia in the Red, Nasdaq Loses Its Balance
Nasdaq futures plunged 3.2% after Trump's speech, while European indices fell nearly 2%. Japan's Nikkei gave in to its defense, losing 3% to an eight-month low. The wave of negativity spread across Asia, affecting both stock and currency markets.
Tech Titans Under Attack
Even the giants succumbed to the selling storm. Apple's market cap was wiped out by more than $240 billion after its shares fell 7% in over-the-counter trading. Nvidia, once a triumphant AI powerhouse, lost $153 billion in market cap, a 5.6% drop.
Fitch: America is returning to the tax policy of the early 20th century
According to the latest estimates from Fitch Ratings analysts, the average import tax rate in the United States has reached a staggering 22% — almost nine times higher than in 2024, when the rate was just 2.5%. Such a level was last recorded more than a century ago, around 1910. Such an aggressive tariff approach could radically change the global trade architecture, in which the United States has long been one of the main opponents of protectionism.
Oil is losing its footing
Oil prices have fallen sharply — a barrel of Brent has fallen by more than 2%, to $73.28. The fall in "black gold", which is often seen as an indicator of global economic activity, reflects growing concerns about future demand volumes. At the same time, Australian shares have fallen and the Australian dollar, another barometer of global trade, has weakened.
Gold Shines Brighter Amid Fear
Amid the panic, investors rushed to the traditional safe haven — gold, the price of which updated its historical maximum, exceeding the mark of $3160 per ounce. At the same time, demand for the Japanese yen increased, which strengthened by more than 1% to 147.29 per dollar. This indicates an active exit of traders from the US dollar, despite its status as a global reserve currency.
The euro holds, China stabilizes the yuan
The European currency demonstrated stability: the euro rate rose by 0.6% to $1.0912. China, in turn, did not allow a sharp devaluation of the yuan — the fall was only about 0.4%. And this despite the fact that the total tariff pressure on Chinese exports exceeded 50%. The blow was especially painful for Vietnam, which was previously considered a "loophole" for bypassing American duties. Apparently, this path is now closed.
Europe under pressure: Healthcare worries
European markets fell on Wednesday, with healthcare stocks particularly weak as investors began to consider the potential risks of US tariffs. The main danger is not so much in the direct economic losses as in the slowdown in global economic growth and the build-up of inflationary pressures that could force the ECB and other central banks to rethink their strategies.
Trump's trade rhetoric drags STOXX 600 and DAX down
European stock indexes ended Wednesday in the red amid growing tensions in global trade. The pan-European STOXX 600 index fell 0.5%, while the export-oriented and risk-sensitive German DAX fell 0.7%.
Investors in Europe acted cautiously: instability ahead of the announcements from Washington did not provide grounds for confident growth. The STOXX 600 continues to trade near two-month lows and remains nearly 5.1% below its March all-time high.
ECB fears global spillover, but remains calm
European Central Bank President Christine Lagarde has put it bluntly, saying a new wave of tariffs from the US would "hurt the whole world" by exacerbating inflation risks and slowing global growth. However, her ECB colleague Francois Villeroy de Galhau noted that European inflation continues to slow and even aggressive US trade policy is unlikely to reverse that trend.
Biotech in the red
The biggest losses on European stock exchanges on Wednesday were in the healthcare sector: the profile index fell by 1.7%, falling to its lowest level since the beginning of the year. Among the biggest outsiders were Sanofi and Novartis, whose shares fell by 1.6%.
The decline in Novo Nordisk was especially noticeable, its shares lost 2.6%, becoming the main drag on the entire STOXX 600. Despite the brilliant reporting of the controlling shareholder, Novo Holdings, which almost doubled its revenue and investment profit to a record €8 billion in 2024, the shares of the pharmaceutical company itself could not withstand the pressure of the overall negative background. Assets under management of Novo Holdings, despite impressive income, showed a slight decrease, which also affected market valuations.
Maritime Maneuver: Svitzer in Focus of Deal
Amidst the general market tension, there was also an unexpected corporate event: Svitzer shares jumped by an impressive 30.2% after A.P. Moller, a holding company that is part of the same group as Maersk, announced a buyout of the company. The offer is 9 billion Danish kroner - approximately 1.3 billion US dollars.
Svitzer, which specializes in towing and marine logistics, is seen as a strategic asset for expanding Moller Holding's controlled operations in key ports around the world. Investors took the news positively, despite the turbulence in global shipping.
Global interest in Spain's Grifols
Another high-profile corporate event is on the horizon - Canadian investment giant Brookfield confirmed that it is in talks with shareholders of Spain's Grifols. Earlier, the media reported on a possible second attempt to acquire the manufacturer of blood plasma-based drugs. In response, Grifols shares rose by 3%.
The fund has not yet disclosed the specific parameters of the offer, but the market is already reacting to the prospect of consolidation in the biopharma sector, especially in an environment where European assets are becoming attractive against the backdrop of a weaker euro and geopolitical uncertainty.
