It’s already been a wild week on Wall Street — and it’s only Wednesday. And the markets could be in for another ride Thursday amid reports of another reversal by President Donald Trump.
Trump is considering a plan to exempt some U.S. automakers from his proposed 25% tariff, according to a report by Financial Times. It would be the latest about-face by Trump to send stocks fluctuating.
Riding a roller coaster of ups and downs largely dictated by Trump’s words, markets saw gains in consecutive sessions — though not enough to overcome recent declines. All three major markets are down for the month following Trump’s April 2 “Liberation Day” announcement of reciprocal tariffs against all trading partners.
The Dow Jones Industrial Average climbed by 419 points, more than 1%, to close at 39,606, but it had risen by more 1,200 earlier in the day. Tech stocks fueled the Nasdaq Composite’s 2.5% surge to 16,708, while the S&P 500 rose 1.67% to 5,375.
Wednesday was the latest wide swing in markets as traders follow Trump’s lead. His harsh words about firing Federal Reserve Chair Jerome Powell and tough talk on 145% tariffs against China sent stocks plunging Monday.
Trump has responded by softening his tone on both topics the Fed and tariffs, saying Tuesday he had “no intention” of firing Powell and hinting Wednesday at a possible trade agreement with Beijing. Trump has since backtracked on tariffs against most nations except China, and now appears to be leaving himself wiggle room.
“The president has made it clear China needs to make a deal with the United States of America, and we are optimistic that will happen,” White House press secretary Karoline Leavitt said. “And when that continues, it will be up to the president what the tariff rate on China will be.”
The Wall Street Journal reported Wednesday that the Trump administration is considering a tariff between 50% and 65% against China. Reports of ongoing trade negotiations between Washington and Beijing were encouraging words for investors.
But historically speaking, the markets do not like instability, and Trump’s see-saw act on fiscal policy could create more wild swings ahead.
