US close: Stocks higher, Trump unveils 'Liberation Day' tariffs
By Iain Gilbert
Date: Wednesday 02 Apr 2025
(Sharecast News) - Major indices closed higher on Wednesday as investors braced for Donald Trump's so-called 'Liberation Day' tariff announcements after the close.
At the close, the Dow Jones Industrial Average was up 0.56% at 42,225.32, while the S&P 500 advanced 0.67% to 5,670.97 and the Nasdaq Composite saw out the session 0.87% firmer at 17,601.05.
The Dow closed 235.36 points higher on Wednesday, easily reversing modest losses recorded in the previous session.
Today's primary focus was undoubtedly Donald Trump's long-awaited tariff announcement after the close, with the US president inking what he called a "historic executive order instituting reciprocal tariffs on countries throughout the world."
"Reciprocal. That means they do it to us and we do it to them. Very simple. Can't get any simpler than that," said Trump, who branded his tariffs as America's "declaration of economic independence".
Trump confirmed his administration would slap 25% tariffs on auto imports starting at midnight, stating that no American companies were "allowed to go into other countries". UK imports were struck with a 10% levy, while EU imports took a heftier 20% hit.
He also claimed that both jobs and factories would "come roaring back" and that the tariffs would usher in a "golden age" for the country. "We will supercharge our domestic industrial base, we will pry open foreign markets and break down foreign trade barriers and ultimately more production at home will mean stronger competition and lower prices for consumers," he said.
However, Trump also stated the tariffs "will be not a full reciprocal. I could have done that, I guess. But it would have been tough for a lot of countries". He said his administration will charge nations "approximately half of what they are and have been charging" the US. He also said the halved figure would include "the combined rate of all their tariffs, nonmonetary barriers and other forms of cheating".
Following the announcement, the yield on the benchmark 10-year Treasury note was more than four basis points lower at 4.136%, while its two-year counterpart shed nearly three basis points to 3.858%.
On the macro front, US businesses added 155,000 workers to their payrolls in March, according to ADP, following an upwardly revised print of 84,000 in February and above market expectations of 105,000. "Despite policy uncertainty and downbeat consumers, the bottom line is this: The March topline number was a good one for the economy and employers of all sizes, if not necessarily all sectors", said ADP chief economist Nela Richardson.
On another note, mortgage applications in the US have fallen for the third straight week, according to data out on Wednesday from the Mortgage Bankers Association of America. Applications were down 1.6% in the seven days to 28 March, following a 2.0% drop the preceding week and a 6.2% plunge the week before. Applications for new home purchases rose for the sixth straight week, increasing 1.5% to a nine-week high. However, refinancing applications dropped 5.6% to their lowest mark in five weeks.
Finally, new orders for US factory-made goods increased by 0.6% month-on-month in February, according to the Census Bureau, following January's upwardly revised 1.8% increase and slightly exceeding expectations for a 0.5% uptick.
In the corporate space, shares in electric carmaker Tesla were lower after it reported Q1 deliveries that fell short of expectations on the Street.
Reporting by Iain Gilbert at Sharecast.com
Dow Jones - Risers
Goldman Sachs Group Inc. (GS) $563.46 2.67%
Microsoft Corp. (MSFT) $382.14 2.33%
Apple Inc. (AAPL) $223.89 2.06%
American Express Co. (AXP) $275.25 1.76%
Home Depot Inc. (HD) $370.87 1.47%
Johnson & Johnson (JNJ) $155.36 1.38%
Caterpillar Inc. (CAT) $334.66 1.24%
Walmart Inc. (WMT) $89.76 1.05%
JP Morgan Chase & Co. (JPM) $245.82 0.89%
Dow Chemical Co. (DOW) $34.90 0.81%
Dow Jones - Fallers
Intel Corp. (INTC) $21.98 -1.77%
Amgen Inc. (AMGN) $305.70 -1.72%
Verizon Communications Inc. (VZ) $44.74 -1.41%
Chevron Corp. (CVX) $166.47 -1.21%
Coca-Cola Co. (KO) $71.33 -0.75%
McDonald's Corp. (MCD) $311.58 -0.65%
Procter & Gamble Co. (PG) $169.50 -0.62%
Merck & Co. Inc. (MRK) $86.60 -0.60%
International Business Machines Corporation (CDI) (IBM) $249.98 -0.14%
Travelers Company Inc. (TRV) $264.49 -0.02%
S&P 500 - Risers
United Airlines Holdings Inc (UAL) $71.37 6.94%
Leggett & Platt Inc. (LEG) $8.30 5.60%
Gap Inc. (GAP) $22.38 5.47%
Carmax Inc. (KMX) $82.77 4.93%
Cadence Design Systems Inc. (CDNS) $264.94 4.84%
CenturyLink Inc. (LUMN) $4.02 4.69%
J.B. Hunt Transport Services Inc. (JBHT) $152.78 4.44%
NRG Energy Inc. (NRG) $102.88 4.41%
Alaska Air Group Inc. (ALK) $51.14 4.28%
Amazon.Com Inc. (AMZN) $196.01 4.23%
S&P 500 - Fallers
Biogen Inc (BIIB) $131.32 -4.08%
Hershey Foods Corp. (HSY) $163.95 -3.34%
Nektar Therapeutics (NKTR) $0.66 -3.09%
Mondelez International Inc. (MDLZ) $66.13 -2.96%
Altria Group Inc. (MO) $57.12 -2.84%
Wynn Resorts Ltd. (WYNN) $81.54 -2.12%
General Electric Co. (GE) $199.77 -1.97%
Intel Corp. (INTC) $21.98 -1.77%
Amgen Inc. (AMGN) $305.70 -1.72%
Deere & Co. (DE) $470.42 -1.58%
Nasdaq 100 - Risers
Tesla Inc (TSLA) $282.76 6.66%
Cadence Design Systems Inc. (CDNS) $264.94 4.84%
J.B. Hunt Transport Services Inc. (JBHT) $152.78 4.44%
Amazon.Com Inc. (AMZN) $196.01 4.23%
Western Digital Corp. (WDC) $41.78 3.93%
Broadcom Inc. (AVGO) $172.09 3.89%
Align Technology Inc. (ALGN) $163.98 3.84%
Charter Communications Inc. (CHTR) $379.27 3.83%
Paypal Holdings Inc (PYPL) $67.15 3.74%
Illumina Inc. (ILMN) $81.88 3.58%
Nasdaq 100 - Fallers
Biogen Inc (BIIB) $131.32 -4.08%
Qvc Group Inc Series A (QVCGA) $0.19 -3.30%
Mondelez International Inc. (MDLZ) $66.13 -2.96%
Biomarin Pharmaceutical Inc. (BMRN) $68.32 -2.87%
Vodafone Group Plc ADS (VOD) $9.12 -2.62%
Wynn Resorts Ltd. (WYNN) $81.54 -2.12%
Intel Corp. (INTC) $21.98 -1.77%
Amgen Inc. (AMGN) $305.70 -1.72%
Hologic Inc. (HOLX) $60.56 -1.46%
Kraft Heinz Co. (KHC) $30.13 -1.41%
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