• Stock futures slipped as Wall Street anticipated President Trump’s reciprocal tariffs’ rollout. The White House confirmed the new levies would be “effective immediately.”
• White House aides have drafted a proposal to impose tariffs of approximately 20% on most imports. Other trade measures, including a 25% tariff on “all cars that are not made in the United States,” are set to take effect. Treasury Secretary Scott Bessent indicated the tariffs will represent a “cap.”
• On Tuesday, Volatility remained a key theme, with the S&P 500 swinging between gains and losses. Consumer discretionary sector was the day’s top performer.
• Economic concerns deepened with a weaker-than-expected ISM manufacturing survey and slightly missed job openings estimates. Traders are watching key labor market data, including the ADP employment report and nonfarm payrolls.
• European markets declined as traders prepared for the new trade tariffs. Asian markets were mixed as investors awaited Trump’s tariff rollout.
• U.S. Treasury yields edged up slightly.
• Gold prices remained steady after hitting an all-time high. Oil prices edged lower as traders took a cautious stance. Bitcoin remained largely stable.

Stock futures slipped on Wednesday as Wall Street braced for the expected rollout of President Donald Trump’s tariffs. The White House confirmed Tuesday that the new levies would be “effective immediately,” targeting imports from all countries under the administration’s “reciprocal tariffs” policy. Despite trade policy uncertainty rattling financial markets this year, stocks have edged higher in the lead-up to Trump’s announcement. The Dow and S&P 500 have both gained close to 1% week to date, while the Nasdaq Composite is up around 0.7%.

US Market Previous Day:

U.S. markets posted mixed results in a choppy trading session Tuesday as investors awaited clarity on Trump’s tariff rollout. The S&P 500 climbed 0.38% to close at 5,633.07, while the Nasdaq Composite gained 0.87%, ending at 17,449.89. The Dow Jones Industrial Average, however, slipped 11.80 points, or 0.03%, to settle at 41,989.96. Volatility remained a key theme, with the S&P 500 swinging between gains and losses throughout the day. At its high, the index was up 0.7%, but it briefly fell nearly 1% before recovering into the close.

(Source: TradingView.com)

The consumer discretionary sector was the day’s top performer, with Tesla gaining 3.6% and Nike adding 2%.

US Futures in Red:

• Dow Jones Industrial Average futures declined by 0.72%
• S&P 500 futures showed losses of 0.92%
• Nasdaq Composite futures lead the pack with losses of 1.15%.

Key Economic Data/News:

Investors are growing increasingly concerned that the White House may implement more severe import tariffs following President Trump’s recent remarks that his “reciprocal tariffs” plan will apply to “all countries” upon its announcement on Wednesday. The White House has confirmed that the tariffs will take effect immediately, with an official statement expected after European markets close.

According to The Washington Post, White House aides have drafted a proposal to impose tariffs of approximately 20% on most imports. However, sources familiar with the matter indicated that multiple options remain under consideration, meaning the 20% rate is not guaranteed. Additionally, other trade measures are set to take effect on Wednesday—dubbed “Liberation Day” by the White House—including a 25% tariff on “all cars that are not made in the United States.”

Treasury Secretary Scott Bessent told lawmakers on Tuesday that the tariffs announced on Wednesday will represent a “cap,” meaning the highest possible rates, with the possibility for reductions if certain conditions are met. Rep. Kevin Hern (R-Okla.) disclosed this information in an interview with CNBC’s Emily Wilkins.

Economic concerns deepened on Tuesday as the Institute for Supply Management’s manufacturing survey came in weaker than expected, remaining in contraction territory. Additionally, February’s job openings slightly missed estimates, with the Bureau of Labor Statistics reporting a drop to 7.57 million—just below the forecasted 7.6 million.

Beyond the tariff developments, traders are closely watching key labor market data. The ADP employment report for March, set for release on Wednesday, is expected to show an increase of 120,000 private-sector jobs, up from 77,000 in February. Later in the week, investors will monitor the ISM Services PMI and weekly jobless claims on Thursday, followed by the nonfarm payrolls report on Friday.

Earnings Season/Company News:

CoreWeave’s explosive IPO and Newsmax’s wild trading action highlight how investor sentiment can swing dramatically, especially in sectors with high speculative interest. A 42% gain for CoreWeave on its second trading day signals strong demand for AI cloud stocks, while Newsmax’s 700% surge and subsequent movements suggest extreme volatility, possibly driven by retail enthusiasm or low float dynamics.

Tesla’s upcoming delivery report is a major event, especially with the headwinds it’s facing—Musk’s political controversies, softening EV demand, and intensified competition. If deliveries come in significantly below expectations, the stock could see further downside pressure. On the other hand, any surprise to the upside might trigger a relief rally, given how much Tesla has already declined in Q1.

Global Market Trends:

European markets declined on Wednesday as global traders prepared for a wave of new trade tariffs set to be announced by the Trump administration. After a brief rebound on Tuesday, the regional Stoxx 600 index fell 0.8% in early trading, with most sectors posting losses. However, food and beverage stocks saw slight gains. The healthcare sector took a significant hit, with the Stoxx 600 healthcare index dropping 2% to its lowest level since December 20, as hopes for a pharmaceutical sector exemption from the tariffs faded. Among the worst performers was German pharma and biotech company Bayer, which slid 3.8%.

In the Asia-Pacific region, markets were mixed as investors awaited Trump’s tariff rollout. Japan’s Nikkei 225 rose 0.28% to close at 35,725.87, while the Topix edged down 0.43% to 2,650.29. South Korea’s Kospi dropped 0.62% to 2,505.86, with the small-cap Kosdaq declining 0.95% to 684.85. Australia’s S&P/ASX 200 inched up 0.12% to close at 7,934.5. Meanwhile, Hong Kong’s Hang Seng Index ended flat at 23,205.15, and mainland China’s CSI 300 dipped 0.08% to 3,884.39.

Debt Market:

(Source: TradingView.com)

On Wednesday, U.S. Treasury yields edged up slightly as investors anticipated upcoming economic data and prepared for the implementation of tariffs by President Donald Trump. The 10-year Treasury yield remained steady at 4.15%, while the 2-year Treasury yield also held steady at 3.865%.

Commodities and Other Assets:

Gold prices remained steady on Wednesday after hitting an all-time high in the previous session, as investors awaited further details on U.S. President Donald Trump’s tariff plans. With economic and geopolitical uncertainty at elevated levels, bullion has been a favored safe-haven asset. Spot gold is now trading over $400 higher than it was when Trump took office in January, reaching a record peak of $3,148.88 on Tuesday. The metal had set fresh highs in each of the last four sessions, though volatility increased on Wednesday as traders exercised caution ahead of the tariff announcement.

Oil prices edged lower as traders took a cautious stance ahead of Trump’s announcement later in the day. Markets were also focused on an upcoming OPEC+ meeting, where the oil group is reportedly considering plans to further increase production. Crude prices had gained over the past week following Trump’s threats of additional sanctions on Russia and potential military action against Iran over a nuclear deal. While traders factored in a higher geopolitical risk premium, concerns over Trump’s policies disrupting global growth and curbing demand limited the upside for oil. Brent crude rebounded to around $74 amid growing fears that U.S. actions could impact oil exports from Venezuela and Iran, reversing an early March sell-off that had pushed prices down to $69. However, analysts at Fitch Solutions’ research unit BMI warned that the rally could struggle to sustain itself due to ongoing macroeconomic uncertainties.

(Source: TradingView.com)

Bitcoin remained largely stable on Wednesday, with limited buying interest as traders remained risk-averse ahead of Trump’s expected tariff announcements. The world’s largest cryptocurrency has seen a slight recovery this week after suffering steep losses in the first quarter of 2025. However, the rebound remains fragile amid ongoing economic turbulence under Trump’s policies. Crypto markets were on edge as investors braced for the possibility of sweeping new tariffs, including potential levies on all U.S. imports.

Market Sentiment:

Market uncertainty has sent stocks on a turbulent ride, with the S&P 500 briefly touching a six-month low on Monday before rebounding. For the first quarter, the index declined 4.6%, while the Nasdaq Composite tumbled 10%, marking the worst quarterly performance for both benchmarks since 2022. The Dow Jones Industrial Average fared slightly better, slipping 1.3% over the first three months of the year. The S&P 500’s 4.6% loss ended a five-quarter winning streak, while the Nasdaq’s 10.4% drop was its steepest quarterly decline since a 22.4% plunge in Q2 2022.

Tesla shares suffered a sharp 36% decline for the quarter, marking their worst performance since 2022. Stocks have been under pressure amid uncertainty surrounding Trump’s tariff policies, contributing to recent market volatility. The S&P 500 has closed lower in five of the past six weeks. However, some investors believe the sell-off may be overdone.