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Stock market today: Dow, S&P 500, Nasdaq surge on hopes for Trump tariff deals
- After days of selling in the equity market that resulted in one of the sharpest three day drops for the S&P 500 (^GSPC) since World War II, stocks are in rally mode on Tuesday.
- All three of the major averages are up about 4% or more, quickly building on gains early in the session. Some of the market’s high flyers of the past few years, which had recently been crushed in the market crash, are leading the way higher too. Nvidia (NVDA) is up nearly 8%, while Tesla (TSLA) has popped more than 6% and Meta (META) has added over 5%.
- “At the slightest, whiff of good news, people come roaring back in because that FOMO [fear over missing out] never goes away,” Interactive Brokers chief strategist Steven Sosnick told Yahoo Finance. “It’s always there. No one, no one ever wants to miss a rally.”
- While the S&P 500 didn’t officially enter a bear market on Monday as it narrowly avoided closing 20% off its recent all-time high, stocks are trading like they normally do in a bear market, or following substantial pullback.
- “If you look back through history some of the biggest short-term rallies, have occurred during, during bear markets,” Sosnick said. “Down markets tend to see very big sharp up moves, because volatility does work in both directions.”
- The brighter mood is helping drive a comeback in “Magnificent Seven” stocks in early trade, led by gains of around 8% for Nvidia (NVDA) as investors regained some appetite for risk.
- Big Tech has been on a wild ride after China announced retaliatory tariffs against the US, and the EU prepared its own set of countermeasures. The group of megacap tech stocks shed $1.8 trillion in value last week.
- President Trump’s tariffs will likely continue to be highly disruptive to the tech trade, Apollo chief global economist Torsten Sløk wrote in a note on Monday morning. (Disclosure: Yahoo Finance is owned by Apollo Global Management.) In part, that’s because the manufacture of their products depends heavily on global supply chains.
- But it was a sea of green on Tuesday. Here’s a look at how the megacap tech stocks are trading:
- Stocks opened higher across the board on Tuesday as President Trump confirmed in a post on Truth Social that trade talks with South Korea are “looking good” following a phone conversation between Trump and acting South Korean President Han Duck-soo.
- “We have the confines and probability of a great DEAL for both countries,” Trump said. “Their top TEAM is on a plane heading to the U.S., and things are looking good. We are likewise dealing with many other countries, all of whom want to make a deal with the United States.”
- The president added the US is “likewise dealing with many other countries, all of whom want to make a deal.”
- According to Trump, Beijing also “wants to make a deal, badly, but they don’t know how to get it started. We are waiting for their call.”
- Trade discussions with China have been tense after the country vowed to “fight to the end” on tariffs. The development comes after Trump threatened to impose an additional 50% tariff on goods from China beginning on Wednesday if the country did not scrap its plans for retaliatory duties.
- The S&P 500 fell over 10% last Thursday and Friday, one of the worst two-day sell-offs we’ve seen in market history.
- In response, US investors did what they’ve come to do best — buy the dip.
- Data from Bank of America published Tuesday showed the firm’s clients were net buyers of $8 billion worth of stock last week, the fourth-largest weekly inflow in its data going back to 2008.
- The firm noted that all three of its client groups — institutions, hedge funds, and private clients — were buyers last week. Notably, its private client group (read: individuals) has been a buyer of stocks for 17 straight weeks.
- This data is just one read from one firm on where money is flowing but isn’t likely to be an outlier no matter how one goes about cutting the data. The simplest answer to questions about what investors have been doing during the tariff market crash, it seems, is “buying stocks.”
- The market action Monday, in which a headline later proved to be not quite fully true sent stocks surging in a matter of seconds, suggests how eager investors seem to buy the dip and see the market recover from the tariff-induced plunge.
- Initial data on how investors are putting money to work during this slide confirms that.
- Stocks were poised for a rebound on Tuesday, with all three indexes surging at least 3% at the opening bell on trade deal hopes.
- The benchmark S&P 500 (^GSPC) ripped 3.2% higher, while the tech-heavy Nasdaq Composite (^IXIC) jumped 3.6%. The Dow Jones Industrial Average (^DJI) popped 3.4%, adding over 1,300 points at the open.
- Yahoo Finance’s Brian Sozzi reports:
- Read more here.
- Yahoo Finance’s Dani Romero reports:
- Read more here.
- Stock futures are climbing after President Trump appeared to open the door to trade talks with some nations.
- Futures tied to the S&P 500 (ES=F) rose 1.6%, and those on the tech-heavy Nasdaq 100 (NQ=F) moved up 1.5%. Dow Jones Industrial Average futures (YM=F) led the gains premarket, surging more than 2%.
- If these moves continue, they will offer investors a reprieve after one of the worst three-day sell-offs since World War II, Yahoo Finance data shows. Ahead of Tuesday’s open, the S&P 500 (^GSPC) has fallen more than 10% in the days since President Trump’s tariff announcement.
- Read seven other charts showing the dramatic fallout from Trump’s ‘Liberation Day’ announcement here
- Shares of Levi Strauss (LEVI) rallied over 10% in premarket trading after the company reiterated its full-year outlook, which included no impact from tariffs. The denim maker also posted better-than-expected earnings and said demand was strong in March.
- But on a more confusing note, Levi’s CFO Harmit Singh stated this on tariffs: “Given that the situation is fluid and unprecedented, the impacts are uncertain. We are in the process of scenario planning and determining different mitigation strategies. We recognize this is a quickly evolving macro situation and we have to see where the dust settles to give you the guidance that is going to be as helpful to you as possible.”
- As Yahoo Finance’s Brian Sozzi noted, the company relies on 130 facilities in China and 50 in Vietnam — two countries Trump earmarked for large tariffs — to produce its various apparel offerings.
- Levi’s CEO Michelle Gass said the company has assembled an internal “task force” to determine the tariff impact and proper responses, such as price increases, Sozzi wrote.
- Read more here.
- Chinese stocks staged a recovery on Tuesday from their historic bruising in the previous session as Beijing stepped in to stem the slide.
- The Hang Seng China Enterprises Index (^HSCE) in Hong Kong ended with a 2.3% gain in the wake of its worst day since the 2008 financial crisis, and the Hang Seng Index (^HSI) closed 1.5% higher.
- Meanwhile, Shanghai’s CSI 300 Index (000300.SS), which slid over 7% on Monday, notched a rise of 1.7%.
- Beijing’s willingness to take measures after tariff-fueled market turmoil stands in contrast to the response in the US. Trump and his allies have shrugged off the rout, with the president saying Wall Street must “take medicine”.
- Bloomberg reports:
- Read more here.
- US Treasurys continued their sharp decline on Tuesday as investors sold bonds to cover losses in other assets and rushed to adjust their expectations for significant US rate cuts, signaling potential stress in financial markets.
- Reuters reports:
- Read more here
- The Nikkei 225 (^N225), Japan’s leading stock index, has bounced back over 6% after plunging 7% yesterday to the lowest level in over 18 months.
- The rebound occurred on Tuesday’s market open after stock futures closed briefly Monday morning with heavy losses triggering a circuit breaker close on trading.
- Tech companies led the rally as strong-performing US tech stocks bolstered belief in the Japanese tech sector.
- Read more here.
- Humana Inc. (HUM)
- Humana Inc. was one of several medical providers seeing jumps after the bell following President Donald Trump’s announcement that payments for Medicare insurers would rise to 5.06% next year. Humana stock leapt 11.5% in extended trading.
- Broadcom (AVGO)
- Shares in the semiconductor developer moved up 3% in after hours trading following news that Broadcom was launching a $10 billion share buyback program. The program will run through until Dec 31.
- Dave & Busters (PLAY)
- Arcade company Dave & Busters saw a 2.3% bounce in after-hours trading after slipping 3.8% during the day. The company fell short of market expectations for Q4 revenue after releasing earnings showing a decline in year-on-year sales.
