U.S. Stock Market Summary for Wednesday, April 2, 2025


Major Indices:

  • S&P 500: Gained 0.7%, closing at 5,670.97

  • Dow Jones Industrial Average: Rose 0.6%, ending at 42,225.32

  • Nasdaq-100: Advanced 0.75%, finishing at 19,581.78

  • Russell 2000: Jumped 1.65%, closing at 2,045.36

Market Overview:

U.S. equities rebounded sharply on Wednesday after a volatile start to the session, as investor sentiment stabilized despite geopolitical concerns and anticipation surrounding major policy announcements. The Nasdaq-100 climbed 0.75%, buoyed by strength in megacap tech, while the Russell 2000 led gains among the major indices with a 1.65% surge, reflecting renewed interest in small-cap stocks.

Tesla rallied 5% following speculation that CEO Elon Musk may step down from his government advisory role, which had previously sparked investor concerns. Amazon added 1.7% amid reports of its bid to acquire TikTok’s U.S. operations. Meanwhile, broader optimism was supported by stronger-than-expected economic data.

Sector Highlights:

  • Automotive: Tesla’s 5% gain helped drive the consumer discretionary sector, reversing early-session losses. Conversely, Rivian fell 5% after reporting a decline in vehicle deliveries.

  • Technology: Amazon and other megacap names lifted the tech-heavy Nasdaq-100. Nvidia dipped slightly as semiconductor stocks responded to trade policy uncertainty.

  • Media: Newsmax saw a dramatic reversal, falling more than 77% after an early surge—highlighting ongoing volatility in speculative media plays.

Economic Snapshot:

Private sector job growth in March exceeded expectations, with 155,000 jobs added, pointing to a resilient labor market. Factory orders rose 0.6% in February, in line with forecasts and reinforcing signs of steady manufacturing demand.

Government & Political Notes:

President Trump officially declared April 2 as “Liberation Day,” unveiling sweeping tariffs targeting key trade partners. The move sparked debate over potential inflationary effects and market disruption, though immediate investor reaction was muted thanks to strong corporate performance.

Conclusion:

The U.S. stock market closed higher during the regular session, but fell sharply in after-hours trading following remarks by President Donald Trump. Speaking from the White House Rose Garden, Trump unveiled broad "reciprocal" tariffs as part of his so-called “Liberation Day” trade strategy. The plan includes a base 10% tariff on all U.S. imports, with higher rates for specific regions: 34% for China and Taiwan, 24% for Japan, 25% for South Korea, 20% for the European Union, 31% for Switzerland, and 10% for the United Kingdom.

Investor anxiety intensified after Trump confirmed a 25% tariff on imported automobiles starting April 3, explicitly stating he "doesn’t care" if automakers raise prices. These actions are expected to impact the auto sector significantly and have already triggered broader market uncertainty.

The sweeping tariff measures have heightened concerns over inflation and a potential economic slowdown. Goldman Sachs raised the probability of a U.S. recession to 35%. As a result, investors are shifting toward safe-haven assets, with gold prices reaching all-time highs.

Experts warn that the new tariffs could disrupt global supply chains, raise consumer prices, and hinder economic growth. Amid growing uncertainty, investors are advised to closely monitor upcoming economic data and policy developments while considering a more cautious investment approach.

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