US Stocks Extend Choppy Trading
US stocks rose on Wednesday, momentarily halting the aggressive selloff from recent sessions even though aggressive tariffs by the US and mounting retaliation from its major trading partners backed concerns of an incoming recession.
The S&P 500 rebounded past 5,000 and the Dow added 100 points, while tech pushed the Nasdaq 100 to gain 1.5%. China raised its tariffs against the US to 84% and added companies to its no-export list after the US's tariff increase to a cumulative 104%, while the EU confirmed tariffs on EUR 21 billion of goods.
The moves backed warnings an incoming recession amid skepticism that President Trump will be open for bilateral deals with foreign delegations. Stocks were also pressured by the bond selloff and concerns that investors are forced to liquidate equities to scramble for cash. Tech gained the most with Nvidia adding 3%. Drugmakers led the losses after Trump threatened to raise tariffs on pharmaceuticals and chemicals, with Merck and AbbVie sinking 3%.
Source: Trading Economics