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S&P 500 flickers near the flatline as trade tensions deepen

The S&P 500 hovers near unchanged levels amid escalating global trade tensions, keeping investors cautious and markets on edge.

flickers near the flatline

The S&P 500 traded near the flatline Wednesday in another volatile sessions, as traders looked for a market bottom after days of volatility even as China and the European Union announced retaliatory tariffs on U.S. goods in the latest escalation of global trade tensions.

The broad market index inched down less than 0.1%. The Dow Jones Industrial Average fell 111 points, or 0.3%. Meanwhile, the Nasdaq Composite outperformed to rise 0.7%.

China announced it will impose an 84% levy on U.S. goods starting Thursday. This comes after U.S. tariffs of 104% on Chinese imports took effect shortly after midnight. The EU also approved its first set of tariffs on the U.S. set to start on April 15.

U.S. tariffs on imports from other countries also took effect. Canada reconfirmed Tuesday plans to put into effect 25% retaliatory tariffs on U.S.-made vehicles. This includes vehicles that aren’t compliant with the United States-Mexico-Canada Agreement, in addition to non-Canadian and non-Mexican content of USMCA-compliant fully assembled vehicles brought into Canada from the U.S.

Some traders appeared briefly encouraged Wednesday morning after Treasury Secretary Scott Bessent said he would be taking a lead negotiating role in tariff talks. Wall Street would favor a bigger role for Bessent over Commerce Secretary Howard Lutnick or trade advisor Peter Navarro.
Shortly after the market open 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.”

Anxiety around the rollout of the tariffs has fueled a four-day rout for stocks. The volatility continued on Tuesday, with the S&P 500 up more than 4% at one point before ending the day with a loss of 1.6%. The 30-stock Dow climbed 3.9% at its high for the day but ultimately fell 0.8% at the end of trading. The broad market index is nearly 19% off its record high. READ More

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