U.S. stocks were volatile in midday trading on Wednesday, with the S&P 500 down 0.4% before recovering to a near flat rate, as investors fought against fallout from Donald Trump’s aggressive tariffs.
The S&P’s initial decline marked the fifth consecutive day in which the index was opened lower after Trump announced dozens of taxes on its US trading partners, wiped out more than 5TN from the S&P.
NASDAQ Composite rose 0.6% in Noon Trading in New York.
The US Treasury hit hard on Wednesday, with 10-year yields being the global benchmark for borrowing costs easing to 4.43% after jumping to 4.51%, rising 0.13 percentage points per day, up from under 3.9% on Monday.
The market conflict came shortly after China announced an additional retaliatory tariff of 50% on US imports.
Beijing’s finance ministry said Wednesday that the new taxes will apply in addition to the previously announced 34% import duties. It added that the duties will take effect on Thursday.
The latest Salvo came on Wednesday as market turmoil escalated after Trump’s sweeping “mutual” tariffs took effect.
Global markets also rattled on Wednesday, with the Stoxx Europe 600 falling 4%, the FTSE 100 falling 3.4%, and Germany’s DAX falling 3.5%.
Investors and economists warn Trump’s tariffs are increasing the risk of a recession in the United States, the world’s largest economy, and new inflation games.
Yaldeni Associates Ed Yaldeni said the sale at the Treasury Department is usually a heaven for investors during periods of market stress, indicating that “the Trump administration may be playing with liquid nitro.”
