U.S. equity futures dipped Wednesday evening after markets closed, following President Donald Trump’s announcement of new tariffs on imported goods. The news sent investors toward safe-haven assets, causing a rise in gold and bond prices.
Initially, S&P 500 E-minis futures saw gains after Wall Street finished the regular trading session in the positive. However, the futures quickly reversed course as Trump detailed his tariff plans in a White House Rose Garden speech.
S&P 500 futures dropped 1.6%, while Nasdaq futures fell 2.4% during Trump’s address. The president, calling Wednesday “Liberation Day,” unveiled a series of tariffs, including a 34% levy on imports from China, 20% on goods from the European Union, and 24% on Japanese imports. Additionally, he announced a 25% tariff on automobiles, covering cars, light trucks, engines, and auto parts.
Before the tariff announcement, the Dow Jones Industrial Average had gained 235.36 points, or 0.56%, closing at 42,225.32. The S&P 500 rose by 37.90 points, or 0.67%, to 5,670.97, while the Nasdaq Composite gained 151.16 points, or 0.87%, to finish at 17,601.05. The MSCI global stock index also saw a 0.48% increase, rising 3.96 points to 836.11.
However, some investors expressed caution about the market’s future movements, noting that the ultimate impact would depend on how U.S. trade partners respond. Walter Todd, Chief Investment Officer at Greenwood Capital in South Carolina, remarked, “We’ve just got one side of the story, which is what we’re doing. And the other side of the story is how other countries respond to this.”
Gold prices surged following the tariff news, fueled by a shift toward safer assets. Spot gold rose by 0.64%, reaching $3,130.38 per ounce, while U.S. gold futures climbed 1.3%, settling at $3,159.30 per ounce.
In the bond market, U.S. Treasury yields fell, with two-year yields hitting a three-week low in the wake of Trump’s tariff announcement. The benchmark U.S. 10-year yield dropped by 1.6 basis points to 4.14%, from 4.156% on Tuesday. The 30-year bond yield decreased by 0.5 basis points to 4.5098%, and the two-year note yield dropped to 3.858%, down from 3.863%.
In currency markets, the U.S. dollar weakened. The euro rose 0.38% to $1.0834, while the British pound gained 0.54% to $1.2989. The dollar also fell 0.17% against the Japanese yen, trading at 149.36.
Energy markets saw oil prices retreat after initially closing higher. U.S. crude declined by 0.27% to $71.00 per barrel, following a 0.72% increase earlier in the session. Brent crude also slipped by 0.59%, ending at $74.07 per barrel, down from the previous close of $74.95.
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