- Stocks slide again as US forges ahead with 104% tariffs on China
The United States said on Tuesday that 104% duties on imports from China will take effect shortly after
midnight, even as the administration of President Donald Trump moved to quickly start talks with other trading
partners targeted by sweeping tariffs. U.S. stocks dropped on Tuesday for a fourth straight trading day since
Trump’s tariffs announcement last week, with the S&P 500 closing below 5,000 for the first time in almost a
year. The index is now 18.9% below its most recent high on February 19, close to the 20% decline that defines
a bear market. S&P 500 companies have lost $5.8 trillion in stock market value since Trump’s tariff
announcement last Wednesday, the deepest four-day loss since the benchmark was created in the 1950s,
according to LSEG data. Global markets had previously posted gains on hopes that Trump might be willing to
negotiate down the array of country and product-specific trade barriers he is erecting around the world’s
largest consumer market. Japan’s Nikkei saw a broad sell-off on Wednesday morning and other Asian markets
were braced for falls, hours before the tariffs were set to take effect. The administration has scheduled talks
with South Korea and Japan, two close allies and major trading partners, and Italian Prime Minister Giorgia
Meloni is due to visit next week. - Dow tumbles more than 300 points Tuesday as tariff-induced sell-off resumes
Stocks dropped Tuesday as a relief rally proved short-lived and investor anxiety returned ahead of President
Donald Trump’s next tariff deadline that will see a cumulative tariff of 104% slapped on China just after
midnight. The Dow Jones Industrial Average dropped 320.01 points, or 0.84%, and closed at 37,645.59, bringing
its four-day loss on tariff angst to more than 4,500 points. Apple led the losses with the iPhone maker’s costs
set to surge with new China tariffs. At its high of the day, the Dow was up 3.9%. The S&P 500 declined 1.57%
to end at 4,982.77. The index was inches away from closing in a bear market, down nearly 19% from its
February record, and it ended the session below 5,000 for the first time since April 2024. Over the past four
days, the S&P 500 has fallen more than 12%. The Nasdaq Composite fell 2.15%, ending at 15,267.91. The tech
heavy benchmark rose as much as 4.5% earlier in the day. The Nasdaq has lost more than 13% in the four-day
rout. - U.S. crude oil closes below $60 per barrel as selloff continues on fears of full-blown trade war
U.S. crude oil closed below $60 per barrel on Tuesday, the lowest level in four years as traders fear that
President Donald Trump’s sweeping tariffs will trigger a full-blown, global trade war. U.S. crude oil lost $1.12,
or 1.85%, to close at $59.58 per barrel, the lowest level since April 2021. Global benchmark Brent fell $1.39, or
2.16%, to settle at $62.82 per barrel. The U.S. benchmark rose much as 1.7% earlier in the session, but pulled
back as Trump’s China tariffs loom over the market. Prices are down more than 15% since last Wednesday
when Trump announced the new round of import taxes. The oil market faces a “toxic cocktail” of recession
fears due to Trump’s tariffs and the decision by OPEC+ to bring more barrels back to the market, said Helima
Croft, global head of commodity strategy at RBC Capital Markets. “For now people are waiting to see if there’s
a potential off ramp to this trade dispute,” Croft told CNBC’s “Squawk on the Street.” The U.S. tariff rate on
China is set to skyrocket to 104% at 12:01 a.m. ET Wednesday, according to the White House. Beijing has shown
no signs of backing down, vowing to “fight to the end.” Treasury Secretary Scott Bessent on Tuesday told CNBC
that China was playing a losing hand. - Gold pares gains as bond yields climb, trade war fears lend support
Gold pared earlier gains on Tuesday as U.S. Treasury yields rose, although a weaker dollar and escalating trade
tensions between the world’s two largest economies underpinned prices. After rising as much as 1.3% earlier
in the session, spot gold was up 0.1% at $2,984.16 an ounce. U.S. gold futures settled 0.5% higher at $2,990.20.
Benchmark 10-year note yields rose to a one-week high, making non-yielding gold less attractive. “Despite
falling for three consecutive sessions, gold remains bullish with trade tensions and the prospect of lower U.S.
interest rates boosting its allure,” said Lukman Otunuga, senior research analyst at FXTM. “A solid breakout
above $3,055 may open the doors back toward $3,100 and $3,130. Sustained weakness below $3,000 could
see gold slip toward $2,950 and $2,930.” Concerns over a global trade war since U.S. President Donald Trump’s
announcement of reciprocal tariffs on April 2 have raised fears of a recession and prompted investors to take
refuge in the safe-haven assets like gold. The U.S. will impose a 104% tariff on China from 12:01 a.m. ET on
Wednesday, a White House official said after Beijing did not lift its retaliatory tariffs on U.S. goods by a noon
Tuesday deadline set by U.S. President Donald Trump. Gold, often used as a safe store of value during times of
political and financial uncertainty, has risen 15% so far this year. Meanwhile, the dollar index fell against its
rivals, making bullion less expensive for other currency holders. Investors are now looking forward to minutes
from the U.S. Federal Reserve’s latest policy meeting due on Wednesday for more clues on the path of rate
cuts. - India’s central bank cuts policy rate by 25 basis points to 6% to boost slowing growth
India’s central bank cut its policy rate by 25 basis points to 6%, marking its lowest level since September 2022
as growth concerns mount in the world’s fifth largest economy. The rate cut was in line with expectations from
analysts polled by Reuters, and comes as the U.S.′ reciprocal tariffs kicked in at midnight stateside (9.31 a.m.
India time) with a 26% levy slapped on goods coming in from India. The move from the Reserve Bank of India
comes amid softening inflation, but also a slowing economy. India’s GDP expanded by a weaker-than-expected
6.2% in the fourth quarter of 2024, and the country’s economy is estimated to grow 6.5% in the financial year
to March 2025 — a sharp slowdown from 9.2% the year before. - China says it will ‘fight to the end’ after Trump threatens 50% additional tariffs
China’s Commerce Ministry said it “resolutely opposes” U.S. President Donald Trump’s threat of escalating
tariffs, and vowed to take countermeasures to safeguard its own rights and interests. The comments came
after Trump said he would impose an additional 50% duty on U.S. imports from China on Wednesday, if Beijing
does not withdraw the 34% tariff it imposed on American products last week. “The U.S. threat to escalate tariffs
on China is a mistake on top of a mistake,” the statement said, according to a CNBC translation. “China will
never accept it. If the U.S. insists on its own way, China will fight to the end.” Last Friday, China’s Finance
Ministry announced 34% in additional tariffs on all goods imported from the U.S., starting April 10, in retaliation
for Trump imposing new levies of 34% on China. The across-the-board tariffs followed two previous rounds of
10%-15% tariffs, targeting mostly agricultural and energy products imported from the U.S. The broadened tariff
scope reflects the Chinese leadership’s diminished hopes for a trade deal with the U.S., said Gabriel Wildau,
managing director at Teneo. Trump’s 34% tariffs on China were on top of the 20% duties rolled out since
February, bringing the total new tariffs this year on China to 54%. The additional levies have lifted the U.S.
weighted average tariff rate on China to as high as 65%, and could dent China’s economy by 1.5 to 2 percentage
points this year, according to Morgan Stanley. - Trump confirms 104% tariffs on Chinese goods as part of unfolding global trade war
Donald Trump is poised to unleash his trade war with the world on Wednesday, pressing ahead with a slew
of tariffs on the US’s largest trading partners despite fears of widespread economic damage and calls to
reconsider. The US president claimed “many” countries were seeking a deal with Washington, as his
administration prepared to impose steep tariffs on goods from dozens of markets from Wednesday. However,
Beijing vowed to “fight to the end” after Trump threatened to hit Chinese exports with additional 50% tariffs if
the country proceeds with plans to retaliate against his initial vow to impose tariffs of 34% on its products. That
would come on top of the existing 20% levy and take the total tariff on Chinese imports to 104%. The White
House confirmed that the higher US tariffs on China would, indeed, be imposed from Wednesday. “President
Trump has a spine of steel and he will not break,” the press secretary, Karoline Leavitt, said. “And America will
not break under his leadership.” The billionaire Trump adviser Elon Musk has also reportedly asked the
president to reverse course, and the New Civil Liberties Alliance, a libertarian group funded by organisations
affiliated with conservative businessmen Leonard Leo and Charles Koch, filed a lawsuit against the “illegal”
tariffs. The latest tariffs are higher than the 10% flat rate imposed on all global imports to the US on Friday last
week and are tailored to specific countries based on a formula that has been criticised by economists that
divides trade in goods deficit by twice the total value of imports. After days of turmoil since they were first
revealed last week, global markets initially recovered some ground on Tuesday as senior US officials attempted
to reassure investors that the new tariffs – including rates of 20% on the European Union, 26% on India and
49% on Cambodia – could be temporary. - Eli Lilly shares gained 0.3% after Goldman Sachs upgraded the obesity drugmaker to buy from neutral,
citing a “compelling entry point into the sector’s premier topline grower” at current levels
Analyst Asad Haider sees Lilly maintaining its “pole position as the leader in a market set to triple in size from
$28 billion today to $95 billion by 2030”. Haider is bullish on the commercial potential of Lilly’s once daily oral
small molecule orforglipron and project risk-adjusted peak sales of $23.5 billion by 2035 “on the back of a
global launch starting in 2026 and a steep ramp”. Says Lilly has put a strategic process in place to replicate the
success of its obesity/incretin franchise across the rest of its portfolio. Moves PT to $888 from $892. - Apple drops 5% as tech, semiconductor stocks fall after market rally fades
Technology stocks declined Tuesday, erasing earlier gains after a broad market relief rally faded. The tech
heavy Nasdaq dropped more than 2%, wiping out an earlier gain of 4.6% at its highs. Apple and Tesla dropped
about 5%. Meta Platforms, Alphabet, Amazon, Microsoft and Nvidia all finished lower. Markets rallied earlier
in the session on optimism that the U.S. could negotiate deals to lower tariffs with some of world leaders.
Those hopes faded on worries that negotiations won’t reach an agreement before reciprocal tariffs go into
effect at midnight. Trump’s wide-sweeping tariff plans have sparked violent turbulence over the past three
trading sessions. Trading volume on Monday hit its highest in nearly two decades in a wild trading session after
speculation that the White House could potentially delay tariffs The Nasdaq on Friday posted its worst week in
five years and the Magnificent Seven group lost $1.8 trillion in market value over two trading sessions. - Cal-Maine (NASDAQ:CALM) Reports Sales Below Analyst Estimates In Q1 Earnings
Egg company Cal-Maine Foods (NASDAQ:CALM) fell short of the market’s revenue expectations in Q1 CY2025,
but sales rose 102% year on year to $1.42 billion. Its GAAP profit of $10.38 per share was 4.8% below analysts’
consensus estimates. Cal-Maine (CALM) Q1 CY2025 Highlights: Revenue: $1.42 billion vs analyst estimates of
$1.43 billion (102% year-on-year growth, 0.8% miss); EPS (GAAP): $10.38 vs analyst expectations of $10.91
(4.8% miss); Operating Margin: 44.8%, up from 21.7% in the same quarter last year; Market
Capitalization: $4.58 billion; $3.80 billion in revenue over the past 12 months. This quarter, Cal-Maine achieved
a magnificent 102% year-on-year revenue growth rate, but its $1.42 billion of revenue fell short of Wall Street’s
lofty estimates. - Walgreens Boots Alliance (WBA) Beats Q2 Earnings and Revenue Estimates
Walgreens Boots Alliance (WBA) came out with quarterly earnings of $0.63 per share, beating the Zacks
Consensus Estimate of $0.53 per share. This compares to earnings of $1.20 per share a year ago. These figures
are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 18.87%. A quarter
ago, it was expected that this largest U.S. drugstore chain would post earnings of $0.37 per share when it
actually produced earnings of $0.51, delivering a surprise of 37.84%. Over the last four quarters, the company
has surpassed consensus EPS estimates three times. Walgreens , which belongs to the Zacks Retail – Pharmacies
and Drug Stores industry, posted revenues of $38.59 billion for the quarter ended February 2025, surpassing
the Zacks Consensus Estimate by 1.75%. This compares to year-ago revenues of $37.05 billion. The company
has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock’s
immediate price movement based on the recently-released numbers and future earnings expectations will
mostly depend on management’s commentary on the earnings call. Walgreens shares have added about 14.8%
since the beginning of the year versus the S&P 500’s decline of -13.9%. - CVS Stock Pops as Pharmacy Chain Improves Full-Year Outlook, Taps New Execs
CVS Health (CVS) shares jumped Tuesday after the company improved its full-year outlook and named a new
chief financial officer. The pharmacy and health insurance giant said it now expects to meet or exceed its
adjusted earnings projection of $5.75 to $6 per share issued in February. Analysts expect $5.89 on average,
according to Visible Alpha. CVS shares jumped over 8% in recent trading. The federal government also
announced late Monday that it will pay Medicare insurers, such as CVS’ Aetna, more than previously expected.
The company’s shares are up about 55% year-to-date, making it the best-performing stock in the S&P 500 since
the start of the year, after a difficult 2024. Along with its improved forecast, CVS announced the appointment
of a new CFO, with former UPS (UPS) CFO Brian Newman set to take over the role effective April 21. The
company also named Amy Compton-Phillips, who most recently served as chief physician executive of Press
Ganey, its chief medical officer, effective May 19. These shakeups follow a CEO change in October that saw
CVS veteran David Joyner take the helm.
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