Benchmark indices on Wall Street saw a rebound on Wednesday in what turned out to be an extremely volatile trading session as investors hoped for more tariff concessions after the White House granted a one-month delay on tariffs to automakers.The Dow Jones gained nearly 500 points after a 1,300-point wipeout over Monday and Tuesday. The S&P 500 gained 1%, while the Nasdaq Composite surged 1.5%.
Stocks continued to oscillate between gains and losses during the first half of the trading session but took a leg up after the White House granted a one-month delay for tariffs on automakers whose cars are compliant with the US-Mexico-Canada Agreement, which was negotiated during Donald Trump’s first term in office.
Automakers too have urged the President to waive the 25% tariffs on Mexico and Canada on vehicles that are compliant with this agreement.
“Reciprocal tariffs will still go into effect on April 2, but at the request of the companies associated with USMCA, the president is giving them an exemption for one month so they are not at an economic disadvantage,” Press Secretary Karoline Leavitt said on behalf of Trump.The move sent shares of automakers higher as Stellantis surged 9%, followed by General Motors and Ford, who gained 7% and 6% respectively. However, it is still not clear whether it will only be cars or even auto parts that will be exempt from this delay.
Stocks continued to oscillate between gains and losses during the first half of the trading session but took a leg up after the White House granted a one-month delay for tariffs on automakers whose cars are compliant with the US-Mexico-Canada Agreement, which was negotiated during Donald Trump’s first term in office.
Automakers too have urged the President to waive the 25% tariffs on Mexico and Canada on vehicles that are compliant with this agreement.
“Reciprocal tariffs will still go into effect on April 2, but at the request of the companies associated with USMCA, the president is giving them an exemption for one month so they are not at an economic disadvantage,” Press Secretary Karoline Leavitt said on behalf of Trump.The move sent shares of automakers higher as Stellantis surged 9%, followed by General Motors and Ford, who gained 7% and 6% respectively. However, it is still not clear whether it will only be cars or even auto parts that will be exempt from this delay.
Treasuries saw small losses in a stark contrast to the plunge in their European counterparts. German bunds tumbled the most since 1990. The dollar fell 1%. Oil sank to the lowest in about six months.
The yield on 10-year Treasuries rose four basis points to 4.28%. The dollar dropped against most major currencies.
The market has been on a wild ride, and traders expect more of that as they assess the latest tariff developments and brace for Friday’s US payrolls report. Options trading projects the S&P 500 to move 1.3% in either direction, in what would be the most for any jobs day since the regional bank turmoil in March 2023.
(With Inputs From Agencies.)
