The S&P 500 rose slightly on Wednesday as investors looked for signs of stability after days of volatility.
The gains came despite new retaliatory tariffs from China and the European Union, which have intensified global trade tensions.
The S&P 500 rose by 0.7 per cent, while the Nasdaq Composite gained 1.5 per cent. The Dow Jones Industrial Average edged up 182 points, or 0.5 per cent.
China announced today it will impose an 84 per cent tariff on U.S. goods starting Thursday. This follows the U.S. move to introduce 104 per cent tariffs on Chinese imports, which came into force just after midnight.
The European Union also approved its first round of retaliatory tariffs on American goods, set to begin on April 15.
The UK stock market has rallied despite Trump's commitment to tariffs GETTY US tariffs on imports from other countries also kicked in. Canada confirmed it will impose 25 per cent tariffs on American-made vehicles.
These apply to vehicles not compliant with the United States-Mexico-Canada Agreement (USMCA), as well as any non-Canadian and non-Mexican parts in USMCA-compliant vehicles shipped into Canada from the U.S.
Shortly after the market opened on Wednesday, President Donald Trump urged investors to remain calm in a post on Truth Social. Trump also added “this is a great time to buy.”
Shares of Trump Media rose after Trump posted on Truth Social urging people to buy stocks, using his initials “DJT” — which also happen to be the ticker symbol for his media company.
US stock market RISES even as global trade tensions grow with fresh tariffs from China, EU and CanadaIn a series of posts, Trump told followers, “THIS IS A GREAT TIME TO BUY!!!” as U. markets opened lower for the fifth day in a row.
He encouraged calm, writing, “BE COOL! Everything is going to work out well,” and said the U.S. would be “bigger and better than ever before.”
JP Morgan Chase CEO Jamie Dimon also commented that a U.S. economic recession is "a likely outcome" from Trump’s tariffs, adding on to rising fears of an economic contraction on Wall Street.
"When you see a 2000-point decline [in the Dow Jones Industrial Average], it sort of feeds on itself, doesn’t it," Dimon said on Fox Business’ "Mornings With Maria" show.
"It makes you feel like you’re losing money in your 401(k), you’re losing money in your pension. You’ve got to cut back."
Investors are reacting to the heightened trade war fears, leading to a sell-off across various sectors.
Donald Trump shows off his tariff boardREUTERSThe energy sector, for instance, has seen notable declines, with oil prices dropping to their lowest levels since early 2021.
The market remains volatile as participants assess the potential long-term impacts of these trade policies on the global economy.
