In a stunning U-turn, Goldman Sachs has officially withdrawn its call for an outright U.S. recession, issued just hours before President Donald Trump stunned markets with a surprise announcement of a 90-day tariff pause for countries that have not retaliated <a href="https://www.benzinga.com/topic/tariffs">against U.S. trade measures.</a>



The move underscores the immediate and far-reaching implications of Trump's announcement, which caught Wall Street experts off guard.



&#8220;We are reverting to our previous non-recession baseline forecast, with GDP growth of 0.5% and a 45% probability of recession." Goldman Sachs chief economist Jan Hatzius wrote in a late day note.



Goldman now sees 0.5% U.S. GDP growth in 2025 and a 45% probability of recession—down from the full recession baseline forecast it published earlier that same day.



The bank still expects three 25-basis-point Fed &#8220;insurance cuts&#8221; in June, July and September but sees a less dire macro trajectory, thanks to the tariff pause and signs of trade stabilization.



The revised forecast reflects Trump's differentiated strategy: escalate pressure on China while opening a negotiation path for allies who've held fire.



Trump announced a 10% minimum reciprocal tariff for non-retaliating nations; sector-specific tariffs of up to 25% are still expected. He confirmed that tariffs on Chinese imports will be 125%.



Commerce Secretary Howard Lutnick confirmed the scale of the pivot, writing on X that he and Treasury Secretary Scott Bessent were with Trump as he drafted the announcement, calling it "one of the most extraordinary Truth posts of his presidency."



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Scott Bessent and I sat with the President while he wrote one of the most extraordinary Truth posts of his Presidency. The world is ready to work with President Trump to fix global trade, and China has chosen the opposite direction. <a href="https://t.co/wNvg8NBnSR">pic.twitter.com/wNvg8NBnSR</a>&mdash; Howard Lutnick (@howardlutnick) <a href="https://twitter.com/howardlutnick/status/1910022477373227166?ref_src=twsrc%5Etfw">April 9, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



To reporters outside the White House, Trump was blunt. "Somebody had to do it. It had to stop because it's not sustainable. Last year, China made $1 trillion off trade with the United States. Now I've reversed it."



Trump also floated the idea of tariff exemptions for certain U.S. companies and added that "China wants to make a deal.&#8221;



Billionaire hedge fund manager Bill Ackman hailed Trump's maneuver as "brilliantly executed," adding: "Every U.S. company that sources products in China is now finding alternative suppliers. Supply chains are sticky. Tick tock."



<h3 class="wp-block-heading">Markets Soar In Historic Day</h3>



The Dow Jones closed up by nearly 3,000 points to 40,608 points, up 7.9%. 



The S&amp;P 500 – as tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) – soared 9.5%, the largest one-day gain since October 2008.



The index surged more than 10% between its intraday low and high—marking the largest single-day swing on record.



The Nasdaq 100 – tracked by the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) – rocketed 12.2%, also the strongest one-day jump since October 2008. 



<h3 class="wp-block-heading">Magnificent Seven – Daily Gains</h3>



<ul>
<li>NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) surged 18.72%, adding $439.87 billion in market cap, closing at $114.33.</li>



<li>Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) jumped 15.33%, gaining $397.05 billion, closing at $198.85.</li>



<li>Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) rose 10.13%, increasing market value by $267.01 billion, closing at $390.49.</li>



<li>Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) advanced 11.98%, up $216.66 billion, closing at $191.10.</li>



<li>Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) rallied 14.76%, adding $190.88 billion, closing at $585.77.</li>



<li>Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) climbed 9.88%, boosting market cap by $175.29 billion, closing at $161.06.</li>



<li>Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) soared 22.69%, gaining $161.91 billion, finishing at $272.20.</li>
</ul>



Total market cap addition: $1.85 trillion



Read now: 



<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/25/04/44720903/nasdaq-100-eyes-strongest-day-since-2008-as-magnificent-seven-add-15-trillion-in-historic-market-rally">Nasdaq 100 Set For Strongest Rally Since 2008 As Magnificent 7 Add $1.5 Trillion In Historic Surge</a></li>
</ul>



Photo: Shutterstock

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Macro Economic Events

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Goldman Sachs Scraps Recession Call After Trump's Surprise Tariff Pause As Wall Street Marks Strongest Day Since 2008

Wedbush's Dan Ives&nbsp;believes the 90-day tariff pause was exactly what the stock market was waiting for. Despite the strong rally in markets, the analyst cautioned that a &#8220;key obstacle&#8221; is <a href="https://www.benzinga.com/25/04/44720006/markets-take-off-as-trump-announces-90-day-tariff-pause-for-non-retaliating-nations-slaps-china-with-125-duty">still on the table</a>. 



What To Know: President Donald Trump on Wednesday announced a 90-day pause on tariffs in a <a href="https://truthsocial.com/@realDonaldTrump/posts/114309144289505174">post</a> on Truth Social. 



The announcement comes less than a day after Trump&#8217;s sweeping reciprocal tariffs went into effect. The tariff pause will be effective immediately for non-retaliating countries, while China will face a steeper 125% tariff due to the &#8220;lack of respect&#8221; the country has shown for global markets.



Trump said more than 75 countries reached out to U.S. officials to begin negotiations in response to the tariff announcement. The Trump administration will maintain a 10% baseline tariff across the board. 



&#8220;This was the news we and everyone on the Street was waiting for as the pressure on Trump took on a life of its own and the eye popping rise of the 10-year yield was ultimately too much to hold his line on the self-inflicted Armageddon tariff unleashed at midnight,&#8221; Ives said in a new note to clients.



Related Link: <a href="https://www.benzinga.com/economics/macro-economic-events/25/04/44720903/nasdaq-100-eyes-strongest-day-since-2008-as-magnificent-seven-add-15-trillion-in-historic-market-rally">Nasdaq 100 Set For Strongest Rally Since 2008 As Magnificent 7 Add $1.5 Trillion In Historic Surge</a>



The Wedbush analyst expects &#8220;massive negotiations&#8221; to start to pick up over the coming months as attention turns toward a longer-term solution. Ives noted that China will be &#8220;front and center&#8221; for markets as the &#8220;biggest wild card.&#8221;



&#8220;For tech stocks, this was much needed relief and pulls stocks and the market from the edge of the cliff, although China remains the biggest X variable related to Apple and the broader supply chain,&#8221; Ives said.



Ives referred to the past several days as a &#8220;twilight zone week&#8221; for investors. Although real damage has already been inflicted on the economy, markets should see some relief as attention turns to negotiations and the ongoing trade war with China, which will be a &#8220;key obstacle&#8221; for U.S. tech stocks, the analyst said. 



The SPDR S&amp;P 500 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), which tracks the S&amp;P 500, was up 8.74% at $539.86 at the time of publication Wednesday. The Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which tracks the Nasdaq-100, was up 11.2% at last check, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/04/44720127/bitcoin-hits-82000-as-president-trump-announces-90-day-pause-on-reciprocal-tariffs-for-all-countries-but-china">Bitcoin Hits $82,000 As President Trump Announces 90-Day Pause On Reciprocal Tariffs For All Countries But China</a></li>
</ul>



Photo: Shutterstock.

Analyst Color

News

Politics

Trump's Tariff Pause Saves Market From 'Edge Of The Cliff,' Dan Ives Says 'Biggest Wild Card' Still Remains

United States Steel Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/X#NYSE">X</a>) shares are getting crushed in Wednesday&#8217;s after-hours session after President Donald Trump suggested he doesn&#8217;t want to see the company get <a href="https://www.benzinga.com/markets/commodities/25/04/44679320/us-steel-gains-16-as-trump-orders-review-of-nippon-steels-blocked-acquisition-amid-national-security-concerns">acquired by Nippon Steel</a>.



What Happened: In a <a href="https://www.youtube.com/watch?v=qr9AeMFXzpY">press conference</a> from the Oval Office late Wednesday, Trump said he wants U.S. Steel to remain a U.S. company. 



&#8220;We don&#8217;t want to see it go to Japan. You know, we love Japan, but U.S. Steel is a very special company,&#8221; Trump said. 



The news comes just a day after U.S. Steel shares surged after Trump ordered a <a href="https://www.benzinga.com/markets/commodities/25/04/44679320/us-steel-gains-16-as-trump-orders-review-of-nippon-steels-blocked-acquisition-amid-national-security-concerns">national security review</a> of the company&#8217;s takeover deal with Nippon Steel, which was blocked by the Biden Administration. 



U.S. Steel and Nippon Steel filed lawsuits in January in response to what the companies said was &#8220;wrongful interference&#8221; with Nippon's proposed $14.9-billion acquisition of U.S. Steel, originally announced at the end of 2023.



The Biden administration said last year that&nbsp;<a href="https://www.benzinga.com/news/24/07/39613777/amid-opposition-from-biden-and-workers-nippon-steel-vc-returns-to-discuss-us-steel-acquisition" target="_blank" rel="noreferrer noopener">it was &#8220;vital&#8221;</a>&nbsp;that U.S. Steel remained a domestically operated American steel company. The proposed acquisition had become a major topic of discussion leading up to the&nbsp;presidential election in November.



X Price Action: <a href="http://benzinga.com/quote/X">U.S. Steel shares</a> were down 11.39% after-hours, trading at $39.98 at the time of publication Wednesday, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/government/regulations/25/04/44723376/goldman-sachs-scraps-recession-call-after-trumps-surprise-tariff-pause-as-wall-street-marks-strongest-day-since-2008">Goldman Sachs Scraps Recession Call After Trump&#8217;s Surprise Tariff Pause As Wall Street Marks Strongest Day Since 2008</a></li>
</ul>



Photo: Shutterstock.

Commodities

Global

After-Hours Center

Movers

US Steel Stock Tumbles As Trump Says 'We Don't Want To See It Go To Japan'

Wall Street staged one of its most powerful rallies in history on Wednesday, as a dramatic shift in U.S. trade policy ignited an aggressive risk-on surge across <a href="https://www.benzinga.com/25/04/44720006/markets-take-off-as-trump-announces-90-day-tariff-pause-for-non-retaliating-nations-slaps-china-with-125-duty">every corner of the market.</a>



At the heart of the rally was President Donald Trump's unexpected announcement of a 90-day tariff pause for countries that have not retaliated against the U.S., coupled with a renewed hardline stance on China. 



The twin messaging—conciliatory toward allies, confrontational toward Beijing—was seen by investors as a calculated move to reset trade negotiations and de-escalate uncertainty.



Trump decided to impose universal 10% tariffs on countries that have not retaliated against U.S. duties, announcing a three-month window for fine-tuning negotiations. He also opted to keep duties on China as high as 125%.



The reaction was immediate and overwhelming.



The Nasdaq 100 – as tracked by the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) – soared 11% by 2:40 p.m. ET, on track for its strongest one-day gain since October 2008, during the height of the global financial crisis. 



The S&amp;P 500 jumped 8.7%, its best session since March 2020, while the Dow Jones Industrial Average surged 7.3%, also notching a post-COVID record. 



Meanwhile, the Russell 2000, which tracks domestic-focused small caps, rocketed 9.1%, nearing one of its best sessions since the index&#8217;s inception in 1987.



<h3 class="wp-block-heading">Mega-Cap Stocks Skyrocket </h3>



The Magnificent Seven stocks added a combined $1.44 trillion in market capitalization in a single session, in what is shaping up to be one of the largest single-day gains in aggregate market value ever recorded for the U.S. tech titans.



<ul>
<li>NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) jumped 15.88%, adding $373.12 billion in market capitalization.</li>



<li>Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) rallied 11.72%, gaining $258.23 billion.</li>



<li>Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) rose 8.17%, up $215.33 billion.</li>



<li>Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) climbed 9.64%, increasing its market value by $174.34 billion</li>



<li>Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) advanced 10.05%, adding $152.22 billion.</li>



<li>Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) surged 7.82%, with a $138.74 billion boost.</li>



<li>Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) soared 18.60%, gaining $132.73 billion.</li>
</ul>



The Roundhill Magnificent Seven ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#NASDAQ">MAGS</a>) soared 11%, its largest one-day jump since the fund&#8217;s inception in 2023.



"This was brilliantly executed by Donald Trump. Textbook, Art of the Deal," hedge fund titan Bill Ackman posted on X, reflecting the enthusiastic reactions from investors.



Economist Mohamed El-Erian noted that while speculation centered on who might have pressured the White House—Congress, CEOs, or courts—it was likely the government bond market that forced the administration's hand: "How close it gets to the line that separates wild price volatility from market malfunctioning," he wrote.



Before Trump's announcement, U.S. Treasuries had come under heavy pressure, with yields climbing amid growing investor skepticism toward American assets.



Market experts saw the move as a potential inflection point. 



"Markets are breathing a loud sigh of relief after President Trump announced a 90-day pause on tariffs and a reduction of certain ones," said Chris Brigati, CIO at SWBC. "The market&#8217;s move upward is violent, and speaks to how badly the market was looking for clarity."



Gina Bolvin, president of Bolvin Wealth Management, called this "the pivotal moment we've been waiting for," adding that the timing, just ahead of earnings season, may give companies a steadier backdrop for forward guidance.



Still, some warned the euphoria may prove temporary. "Uncertainty looms over what happens after the 90-day period," Bolvin said. "This underscores the importance of staying fully invested, particularly in a market as reactive and headline-driven as this one."



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/news/25/04/44716555/thomas-peterffy-greatest-buying-opportunity-tariffs-roil-markets">Don&#8217;t Panic, Billionaire Thomas Peterffy Says: Tariffs Present &#8216;Greatest&#8217; Buying Opportunity</a></li>
</ul>



Photo: Shutterstock

Tech

MAGS

Nasdaq 100 Set For Strongest Rally Since 2008 As Magnificent 7 Add $1.5 Trillion In Historic Surge

Wall Street roared higher on Wednesday in a dramatic reversal of sentiment, as investors cheered a surprise announcement from President Donald Trump: a 90-day pause on tariffs for countries that have not retaliated <a href="https://www.benzinga.com/topic/tariffs">against U.S. trade measures. </a>



The news ignited a broad risk-on rally, catapulting major indices to multi-month highs and sending volatility plunging.



Trump's latest Truth Social post slammed China for showing &#8220;a lack of respect&#8221; and declared an immediate 125% tariff hike on Chinese goods.



&#8220;At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable,&#8221; he said.



He praised the over 75 countries that, in his words, "have not, at my strong suggestion, retaliated in any way, shape, or form." 



As a reward, those countries would benefit from a temporary 10% reciprocal tariff and a 90-day pause on additional duties. 



During a White House press conference, Treasury Secretary Scott Bessent sought to translate the president's fiery rhetoric into market policy terms. 



He described the tariff realignment as a necessary correction to &#8220;decades of imbalances in global trade.&#8221; 



&#8220;The market didn&#8217;t understand Trump&#8217;s maximum level tariffs,&#8221; he said.



Bessent delivered a series of sharp jabs at Beijing. "They sell us five times what we sell them," he said. "It's an own goal by China." He also accused Beijing of exposing itself to the world as "the bad actor," and argued that Trump's move creates the leverage to correct the deficit.



&#8220;They&#8217;ve showed themselves to the rest of the world that they are the bad actor,&#8221; Bessent stated



Regarding the new level of universal tariffs, Bessent said that &#8220;10% is a temporary floor,&#8221; which gives &#8220;more certainty now&#8221;



Equity markets skyrocketed. The Nasdaq 100 – as tracked by the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) – exploded 10% higher, its strongest session since October 2020.



The S&amp;P 500 jumped 7.6% to above 5,350, while the Dow Jones Industrial Average soared 6.8%, topping 40,000. Small caps joined the party too, with the Russell 2000 climbing 9.1%.



Volatility collapsed, as the CBOE VIX Index plunged more than 27%, reflecting the market's sudden embrace of risk.



Every sector in the S&amp;P 500 traded deep in the green, led by technology and consumer discretionary. 



Within the tech sector, the Magnificent Seven saw explosive gains across the board as investors piled back into mega-cap growth theme:



<ul>
<li>Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) surged 10.05% to $561.73</li>



<li>Microsoft Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) climbed 8.21% to $383.69. </li>



<li>Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) advanced 8.85% to $185.77. </li>



<li>Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) rallied an impressive 11.72% to $192.63. </li>



<li>Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) led the pack with a 16.75% jump to $259.02.</li>



<li>Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) rose 7.37% to $157.38. </li>



<li>Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) skyrocketed 14% to $110.76.</li>
</ul>



All S&amp;P 500 stocks rallied, with the top performers being United Airline Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UAL#NASDAQ">UAL</a>), Microchip Technology Company (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHP#NASDAQ">MCHP</a>) and SanDisk Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SNDK#NASDAQ">SNDK</a>), up 22%, 21% and 20%, respectively. 



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/markets/asia/25/04/44715261/from-bad-to-terrible-treasury-secretary-slams-beijings-retaliatory-tariffs-as-trump-trade-agenda-wipes-trillions">&#8216;From Bad To Terrible&#8217;: Treasury Secretary Slams Beijing&#8217;s Retaliatory Tariffs As Trump Trade Agenda Wipes Trillions</a></li>
</ul>



Photo: Shutterstock

MCHP

NFLX

SNDK

Wall Street Roars As Trump Pauses Tariffs For Non-Retaliator, Hikes China Duties To 125%

Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) on Wednesday crossed the $82,000 mark, following <a href="https://www.benzinga.com/markets/cryptocurrency/25/04/44703305/bitcoin-is-a-more-liquid-and-higher-volatility-version-of-gold-bernstein">a significant short squeeze</a> that liquidated $75 million in bearish bets within a span of one hour.



The apex crypto Bitcoin made a high of $82,450 according to TradingView data after President Trump's <a href="https://truthsocial.com/@realDonaldTrump/114309144289505174">announcement</a> that the U.S. would raise tariffs on China to 125%, effective immediately, but pause reciprocal tariffs on 75 countries for 90 days.



Altcoins also rallied sharply.



Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) gained 9%, Ripple&#8216;s (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/xrp/usd">XRP</a>) rose 10%, Solana (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/sol/usd">SOL</a>) jumped 12%, and Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>) added 10% in the same period.



"Based on the lack of respect that China has shown to the World's Markets, I am hereby raising the Tariff&#8230; to 125%," Trump wrote in the statement.



While many interpreted the tariff spike as a renewed escalation in trade tensions, analysts suggested it may be a strategic pressure tactic rather than a permanent fixture.



Also Read: <a href="https://www.benzinga.com/markets/cryptocurrency/25/04/44717039/treasury-secretary-bessent-trump-admin-will-take-a-close-look-at-impediments-to-blockchain-stablecoins">Treasury Secretary Bessent: Trump Admin Will Take A Close Look At Impediments To Blockchain, Stablecoins&#8217;</a>



"The threat of tariffs is likely a negotiating tool," said analysts at Bitfinex. "We doubt this will become permanent policy."



However, they noted the equity markets have been stretched, especially in tech and AI sectors, and that this was "an opportunity for many value investors to sell." 



Bitfinex also cautioned that expectations for a volatility bottom may be premature. "We expect the VIX to rise in the short term," they added.



On the crypto side, sentiment remains cautiously optimistic.



"We should see some solid relief in the short term due to this," said Teddy Pornprinya, Co-Founder of Plume Network. "At the very least, it&#8217;ll ease up the pain quite a bit&#8230; but I don&#8217;t think it&#8217;ll just be a quick V-shaped recovery back to ATHs."



Pornprinya also highlighted that real-world asset portfolios, like those offered on Plume, have been more resilient than broader crypto markets.



"We expect bonds, credit, and alternatives to hold up best in this environment," he said.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/04/44716576/trump-tariff-winners-bitcoin-and-gold-bitwises-matt-hougan-says">Trump Tariff Winners? Bitcoin And Gold, Bitwise&#8217;s Matt Hougan Says</a></li>
</ul>



Image: Shutterstock

Cryptocurrency

$BTC

$DOGE

$ETH

$SOL

$XRP

Bitcoin Hits $82,000 As President Trump Announces 90-Day Pause On Reciprocal Tariffs For All Countries But China

Wall Street saw a tentative tech rebound early Wednesday, as investors begin to shrug off escalating U.S.-China trade tensions following <a href="https://www.benzinga.com/markets">a steep market selloff.</a>



After the Trump administration announced a dramatic hike in tariffs on Chinese goods to 104% starting Wednesday, Beijing retaliated with an 84% tariff on American products. U.S. Treasury Secretary Scott Bessent defended the aggressive trade stance, claiming the impact would ultimately backfire on China.



President Donald Trump took to Truth Social, writing, &#8220;BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!&#8221; 



He encouraged investors by stating, &#8220;this is a great time to buy, DJT,&#8221; likely referring to Trump Media &amp; Technology Group Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DJT#NASDAQ">DJT</a>), rather than the Dow Jones Transportation Index, which has dropped 18% since the tariff news broke.



Yet, broader risk sentiment remains subdued, with investors awaiting either a softer tone from the White House or a signal from the Federal Reserve—though both hopes appear to be fading.



By mid-morning in New York, tech stocks staged a rebound, lifting the Nasdaq 100 by 0.9%. Yet, the S&amp;P 500 and Dow Jones Industrial Average remained flat, while the Russell 2000 continued to underperform.



Meanwhile, U.S. Treasuries were failing to provide their traditional safe-haven support amid heightened uncertainty and volatility.



The 10-year Treasury yield surged 10 basis points to 4.40%, triggering a sharp selloff in medium- and long-dated bonds. The popular iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) dropped 1.8%, extending its three-day slide to 6.6%—its worst performance since March 2020.



Gold prices, on the other hand, soared over 3% to $3,075 per ounce, on track for their strongest daily gain since October 2023.



Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) also advanced, rising 1.4% to $77,289.



<h2 class="wp-block-heading">Wednesday&#8217;s Performance In Major US Indices, ETFs</h2>



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Major Indices</td><td>Price</td><td>1-day %</td></tr><tr><td>Nasdaq 100</td><td>17,243.25</td><td>0.9%</td></tr><tr><td>S&amp;P 500</td><td>4,980.40</td><td>0.0%</td></tr><tr><td>Dow Jones</td><td>37,576.14</td><td>-0.2%</td></tr><tr><td>Russell 2000</td><td>1,744.85</td><td>-1.1%</td></tr></tbody></table><figcaption class="wp-element-caption">Updated by 11:25 a.m. ET</figcaption></figure>



According to&nbsp;<a href="https://www.benzinga.com/pro/?utm_source=BZprocontent&amp;t=be2bearmibe3na1">Benzinga Pro</a>&nbsp;data:



<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) inched 0.3% up to $498.23.</li>



<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) inched 0.1% up to $376.72.</li>



<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>)&nbsp;rose 1% to $420.50.</li>



<li>The&nbsp;iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) fell 0.9% to $173.58</li>



<li>The&nbsp;Technology&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) outperformed, up 1.6%; the&nbsp;Utilities&nbsp;Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) lagged, down 1.9%.</li>
</ul>



<h3 class="wp-block-heading">S&amp;P 500&#8217;s Top 5 Performers</h3>



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><thead><tr><th>Name</th><th>Last</th><th>Chg %</th></tr></thead><tbody><tr><td>Delta Air Lines, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAL#NYSE">DAL</a>)</td><td>38.43</td><td>7.11%</td></tr><tr><td>Advanced Micro Devices, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>)</td><td>82.60</td><td>5.62%</td></tr><tr><td>Intel Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>)</td><td>18.97</td><td>4.62%</td></tr><tr><td>Tesla, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>)</td><td>231.56</td><td>4.37%</td></tr><tr><td>Skyworks Solutions, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SWKS#NASDAQ">SWKS</a>)</td><td>51.35</td><td>4.36%</td></tr><tr><td>Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>)</td><td>179.89</td><td>4.33%</td></tr></tbody></table></figure>



<h3 class="wp-block-heading">S&amp;P 500&#8217;s Worst 5 Losers</h3>



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><thead><tr><th>Name</th><th>Last</th><th>Chg %</th></tr></thead><tbody><tr><td>Bristol-Myers Squibb Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BMY#NYSE">BMY</a>)</td><td>50.29</td><td>-5.24%</td></tr><tr><td>AbbVie Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABBV#NYSE">ABBV</a>)</td><td>167.51</td><td>-4.64%</td></tr><tr><td>Alexandria Real Estate Equities, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARE#NYSE">ARE</a>)</td><td>73.55</td><td>-4.41%</td></tr><tr><td>Bank of America Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>)</td><td>33.49</td><td>-4.40%</td></tr><tr><td>Incyte Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INCY#NASDAQ">INCY</a>)</td><td>54.50</td><td>-4.34%</td></tr></tbody></table></figure>



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Photo: Ryan DeBerardinis/Shutterstock

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Tech Stocks Rebound As US Treasuries Tumble: What's Driving Markets Wednesday?

Interactive Brokers Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IBKR#NASDAQ">IBKR</a>) founder Thomas Peterffy sees the recent tariff shock as a generational buying opportunity, <a href="https://www.benzinga.com/25/04/44710082/trumps-liberation-day-tariffs-wipe-out-174-billion-from-the-net-worth-of-worlds-top-10-billionaires-including-warren-buffett">not a reason for panic</a>.



What To Know: In an <a href="https://www.bloomberg.com/news/articles/2025-04-09/billionaire-peterffy-backs-tariffs-says-we-ve-seen-the-bottom?srnd=homepage-americas&amp;sref=TBDibEcD">interview</a> with Bloomberg, the 80-year-old billionaire dismissed criticism that President Trump's 104% tariff hike on <a href="https://www.benzinga.com/25/04/44708103/why-investors-should-watch-chinas-service-trade-amid-us-tariff-escalation-disney-and-imax-most-impacted">Chinese imports</a> should have been phased in more gradually.



Swift implementation is crucial to spur genuine reshoring and supply chain shifts, Peterffy argues. 



"If these tariffs were just a future promise, people may not firmly believe it's going to happen,&#8221; he said.



U.S. stocks and Treasuries have been tumbling recently as the tariff-induced selloff wiped out <a href="https://www.benzinga.com/markets/bonds/25/04/44679299/trump-tariffs-triggers-historic-equity-wipeout-outpacing-covid-lehman-crashes-with-no-bond-rally-to-cushion-the-blow-says-lawrence-mcdonald">trillions in equity capital</a>. 



According to Peterffy, the bottom is in, especially for American manufacturing and<a href="https://www.benzinga.com/topic/robotics"> robotics sectors</a>.



His firm's clients were net buyers of U.S. tech giants like Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) and Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) last week — with only China-based Alibaba Group Holding Ltd &#8211; ADR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) seeing net selling.



"This is the greatest opportunity I've seen in my nearly 60-year career on Wall Street to buy," he said.



What Else: Peterffy's bullishness comes amid growing skepticism about U.S. market resilience. Global investors are <a href="https://www.benzinga.com/government/regulations/25/04/44710975/wall-streets-american-exceptionalism-trade-falters-as-dollar-stocks-bonds-all-slide">reevaluating the "American exceptionalism"</a> thesis as equity and bond markets suffer parallel declines.



A 17-basis point spike in 10-year Treasury yields and a 3.5% drop in long-dated bond ETFs suggest even safe-haven assets are under pressure, with some institutions liquidating across the board to raise cash.



The escalating tariff war has further strained sentiment. China responded with its own 84% levy on American goods, threatening to destabilize global trade. While Treasury Secretary Scott Bessent downplayed systemic risk, he warned of a potential fallout if Beijing devalues the yuan.



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Image created using artificial intelligence via Midjourney.

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Don't Panic, Billionaire Thomas Peterffy Says: Tariffs Present 'Greatest' Buying Opportunity

After wild market volatility amid escalating tariff tensions, Wall Street is heading into a potentially game-changing moment: the March inflation <a href="https://www.benzinga.com/topic/inflation">report, due Thursday morning</a>.



With investors jittery over the economic fallout from rising trade barriers, the Consumer Price Index data could either bolster hopes for rate cuts or confirm fears that the Federal Reserve remains cornered by sticky inflation, further disappointing investor sentiment.



Fed Chair Jerome Powell made it clear last week that there is &#8220;no rush&#8221; for rate cuts. He cited heightened uncertainty around growth and inflation, particularly in light of the White House's aggressive tariff stance.



Yet, a meaningful cooling in consumer prices might open the door to a more dovish posture as policymakers would shift their focus to the likely economic damage from tariffs.



For a market gripped by one of the fastest selloffs in modern history, a soft inflation print could be a much-needed glimmer of hope in an otherwise stormy environment.



In the lead-up to the inflation report, the S&amp;P 500 — tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) — has dropped more than 10% since Donald Trump's tariff announcement on April 2 and now sits 18% below its February peak, flirting with bear market territory.



Money markets are pricing in a 43% probability that the Federal Reserve will cut interest rates by 25 basis points at its May meeting. A softer-than-expected inflation print could significantly boost those odds, offering potential relief to jittery markets.



<h3 class="wp-block-heading">March Inflation Preview: What Do Economists Predict?</h3>



The median estimate from economists calls for a 2.6% year-over-year rise in headline CPI for March 2025, easing from February's 2.8% and marking the lowest inflation print since October 2024. 



Prices are expected to tick up just 0.1% monthly, down from 0.2% the previous month—the slowest pace since July 2023.



Core CPI, which excludes the more volatile food and energy components, is projected to decelerate modestly to 3.0% year-over-year, down from 3.1% in February. Yet, the monthly core reading is expected to tick higher to 0.3%, up from the prior month's 0.2% pace.



Goldman Sachs economist Jessica Rindels projects the report to come in broadly in line with consensus. She highlights three underlying trends likely to shape the data. First, used vehicle prices are expected to decline by around 0.5%, driven by softness in wholesale auction prices. 



At the same time, new car prices may see a marginal rise of 0.1% as dealership incentives dwindle. The most notable increase is forecast in car insurance, where premiums are rising sharply, potentially pushing the category up by 1.0% in March.



&#8220;Going forward, we expect a boost to monthly inflation from the escalation in tariff policy. Aside from tariff effects, we expect underlying trend inflation to fall further this year, reflecting shrinking contributions from the auto, housing rental, and labor markets that is partially offset by catch-up inflation in healthcare,&#8221; Rindels said.



Core inflation, which excludes energy and food items, is expected to ease from 3.1% to 3% annually in March. The monthly reading is seen accelerating from 0.2% to 0.3%.



<h3 class="wp-block-heading">The &#8216;Fed Put&#8217; Is Off The Table, Wall Street Veteran Analyst Warns</h3>



Veteran strategist Ed Yardeni takes a more cautionary tone, warning that the CPI and Friday's Producer Price Index (PPI) report may reveal faster gains in goods prices, driven by import taxes and supply chain friction.



"The Fed Put is likely on hold this year," Yardeni said, referring to the long-standing assumption that the Fed would step in to support markets during downturns. 



"Even if tariffs and uncertainty cause a real GDP slowdown, the Fed may be reluctant to cut."



Yardeni indicated that higher headline inflation could force the central bank to keep rates elevated longer than the market expects, compounding risks for equity markets already reeling from what he calls the "Trump Tariff Turmoil" (TTT).



Read now: 



<ul>
<li><a href="https://www.benzinga.com/government/regulations/25/04/44710975/wall-streets-american-exceptionalism-trade-falters-as-dollar-stocks-bonds-all-slide">Wall Street&#8217;s &#8216;American Exceptionalism&#8217; Trade Falters As Dollar, Stocks, Bonds All Slide </a></li>
</ul>



Photo: Shutterstock

Federal Reserve

Sink Or Swim? Why This Week's Inflation Report Is Crucial For Markets

U.S. Treasury Secretary Scott Bessent appeared on Fox Business Wednesday to praise President Donald Trump's aggressive trade stance and decry China's latest move to hike tariffs on <a href="https://www.benzinga.com/25/04/44708618/china-retaliates-with-massive-84-tariff-hike-on-us-goods-amid-escalating-trade-war">U.S. goods to 84%</a>.



What Happened: "They have the most imbalanced economy in the history of the modern world," Bessent said, referring to Beijing. "They can raise their tariffs, but so what? Their exports to the U.S. are five times ours to them. This escalation is a loser for them."



Bessent warns that China's economy is already in a deep structural slowdown, weighed down by <a href="https://www.benzinga.com/real-estate/24/05/38643079/chinas-new-homes-market-is-in-a-state-of-freefall">a real estate crisis</a> and weak consumer demand.



Meanwhile, Trump's tariff-induced sell-off has <a href="https://www.benzinga.com/markets/bonds/25/04/44679299/trump-tariffs-triggers-historic-equity-wipeout-outpacing-covid-lehman-crashes-with-no-bond-rally-to-cushion-the-blow-says-lawrence-mcdonald">wiped out $9 trillion</a> in equity capital over six weeks. It rivals the $9 trillion lost during the COVID crash in 2020 over one month. It also surpasses the $8 trillion erased during the 12 months following the Lehman Brothers collapse in 2008. Also, U.S. consumer confidence is at its <a href="https://www.benzinga.com/government/regulations/25/03/44475192/consumer-confidence-falls-to-lowest-since-2022-as-inflation-tariff-worries-grow">lowest level since late 2022</a>.



But Bessent insists that the trade war is compounding China's economic problems. Any attempt by Beijing to manipulate its currency to offset tariffs would damage its own economy, he argues.



"They're going from bad to terrible," Bessent said. "If China tries to devalue their way out of this, then that's a tax on the rest of the world."



Bessent added that such a move would likely trigger a global chain reaction, forcing other countries like Japan, South Korea, and the European Union to raise tariffs in response to a weaker yuan. He claims that would further isolate China economically.



"Everyone is coming to the table. Basically, China is surrounded," Bessent said, referring to growing trade cooperation between the U.S. and key Asian allies like Vietnam, Japan and South Korea.



Bessent also tied the tariff push to national security, pointing to China's role in the fentanyl epidemic that continues to ravage the U.S. population. He said that addressing the flow of precursor chemicals from China should be a top priority in any negotiations.



"Distributing drugs in China is punishable by death. Why don't they apply the same standard to the people who are exporting these chemicals to the U.S.?" Bessent asked.



He said the original trigger for Trump's tariff escalation was China's failure to stop fentanyl exports. This, he says, remains a valid reason to maintain pressure.



See Also: <a href="https://www.benzinga.com/government/regulations/25/04/44710975/wall-streets-american-exceptionalism-trade-falters-as-dollar-stocks-bonds-all-slide">Wall Street&#8217;s &#8216;American Exceptionalism&#8217; Trade Falters As Dollar, Stocks, Bonds All Slide</a>



Why It Matters: Bessent says China's retaliatory tariff action in response to the U.S. imposing a 104% tariff on Chinese goods will hurt its own fragile economy far more than it impacts the U.S.



Chinese officials disagree. "As the world's second-largest economy and the second-largest consumer market, China will only continue to open its doors wider, regardless of the changing international landscape," China's Foreign Ministry said in a <a href="https://www.fmprc.gov.cn/zyxw/202504/t20250405_11588935.shtml" target="_blank" rel="noreferrer noopener">statement</a> on April 5.



Markets remain in turmoil, with the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) nearing bear market territory. Pressure is now extending to Treasuries as well.



The iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) plunging 6.5% over four sessions. But Bessent played down fears of a systemic crisis, characterizing the selloff in Treasuries as a normal market shakeout.



"This is an uncomfortable but normal deleveraging. Some large leverage players are experiencing losses and being forced to reduce exposure," Bessent said.



As leverage comes down, the bond market will stabilize, he said. Bank deregulation will also create new, more durable demand for Treasuries, he added.



What&#8217;s Next: Bessent says the White House is moving to pass a tax extension package and roll out further deregulation measures aimed at reigniting private sector investment.



He called the negotiations "substantial" and said Trump's direct involvement is accelerating momentum on Capitol Hill. Deregulation, he noted, takes time to show results, but will be "powerful" once implemented.



"We are going to releverage the private sector through smart, safe and sound bank deregulation," Bessent said. "Part of that includes changing the Supplementary Leverage Ratio so banks can buy more Treasuries without a big capital charge."



Bessent said Trump's economic plan is about reversing trends from the previous administration. 



It&#8217;s worth noting that, under the Biden administration, the U.S. unemployment rate was 3.4% at one point. The last time it was that low <a href="https://www.benzinga.com/general/politics/23/05/32369714/its-been-70-years-since-a-president-with-unemployment-at-3-4-had-approval-ratings-as-low-as-bide">was in 1969</a>.



"We're reprivatizing the economy," Bessent said. &#8220;As we get the budget under control and inflation under control, energy prices will come down, and then the private sector will have room to grow.&#8221;



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Image: Shutterstock

Asia

'From Bad To Terrible': Treasury Secretary Slams Beijing's Retaliatory Tariffs As Trump Trade Agenda Wipes Trillions

At the start of 2025, exposure to the U.S. dollar and American assets like equities and Treasuries was a staple in global investment portfolios, riding high on the back of a resilient economy and a <a href="https://www.benzinga.com/news/econ-s">dominant U.S. exceptionalism narrative. </a>



For years, the global investment narrative leaned heavily on American dominance. Strong tech innovation, high productivity and relatively better demographics helped maintain a performance gap between U.S. equities and their global peers.



That conviction, however, is unraveling just four months later, as escalating trade tensions—spurred by President Donald Trump&#8216;s aggressive tariff push—have dramatically altered the outlook for the world&#8217;s largest economy.



The U.S. dollar and American assets, including both stocks and bonds, are experiencing a broad selloff, raising concerns among investors and challenging assumptions about the stability of U.S. markets.



<h3 class="wp-block-heading">Why Investors Perceive The US Isn't Safe Anymore</h3>



After several days of carnage on Wall Street, investor sentiment remains deeply negative, but the market reaction is beginning to signal something more concerning than just an equity selloff. 



The U.S. Treasury market, traditionally a safe haven during periods of market stress, is no longer playing its usual role.



Yields on the 10-year U.S. Treasury note spiked by 17 basis points during Wednesday's morning session, reaching 4.45%. That move — occurring in tandem with steep equity losses — is counterintuitive. 



Typically, bonds rally and yields fall as investors seek safety when stocks tumble. The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) is now teetering on the brink of a bear market, down nearly 20% from its recent peak, yet Treasuries are offering no refuge.



Instead, bond prices are falling sharply. The iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) has declined 3.5% over the last three trading sessions and slid another 3% in premarket trading on Wednesday. 



This marks the worst four-day stretch since 2022, when Treasuries plunged amid the Federal Reserve's rapid-fire rate hikes to combat soaring inflation.



Unlike in 2022, the current bond selloff appears to be driven less by inflation or rate expectations and more by growing concerns about the broader appeal of U.S. assets.



<h3 class="wp-block-heading">Investors Are Liquidating Everything, Even Risk-Free Treasuries</h3>



Worryingly, it suggests that investors are liquidating even high-quality, dollar-denominated holdings to raise cash, as noted by a Citi research report published this week.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Citi on yesterday&#39;s &quot;mysterious rise&quot; in Treasury yields: &quot;This could be an early sign that investors are looking to liquidate positions even in high-quality assets to raise cash.&quot; <a href="https://t.co/8DGVyzq1DG">pic.twitter.com/8DGVyzq1DG</a>&mdash; Tracy Alloway (@tracyalloway) <a href="https://twitter.com/tracyalloway/status/1909575344908026297?ref_src=twsrc%5Etfw">April 8, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



&#8220;Much of the recent focus has been on the anomalous positive correlation between USD and US stocks,&#8221; Bank of America Global Rates and Currencies team wrote in a note Wednesday. 



"The correlation shifts are consistent with rising U.S. risk premium, ‘peak U.S. exceptionalism,'" said Bank of America. The note advised watching official data and Treasury auctions to assess the changing nature of foreign demand, particularly from unhedged buyers.



"The backdrop of U.S. exceptionalism in recent years has leaned against FX-hedging U.S. equities from a foreign investor perspective," wrote Goldman Sachs analysts. "In a few short months, those conclusions have flipped."



Goldman's FX strategist Michael Cahill said that if tariffs continue to erode corporate margins and reduce real consumer incomes, the central pillar of a strong dollar may crack. The dollar index is already showing signs of strain after months of bullishness.



&#8220;80 days ago in Davos, most common phrase was &#8220;American exceptionalism.&#8221; You heard everywhere. I would say probably every meeting I went to, everyone is focusing on how to do more in the United States. And obviously that&#8217;s been thrown out right now,&#8221; said BlackRock CEO Larry Fink during an event at the Economic Club of New York. 



Jefferies strategist Chris Woods also believes that the U.S. has likely peaked in terms of its share of global stock market capitalization. He sees limited upside for U.S. equities amid high valuations and slowing growth, and said that emerging market equities could begin to outperform if the dollar weakens further.



According to DataTrek Research, the so-called "American exceptionalism trade" relied on a virtuous cycle: rising stock prices drove capital allocation and underpinned economic policy that reinforced financial markets.



This self-sustaining loop has endured for 15 years, but a prolonged bout of volatility could cause lasting damage.



"A few weeks of turmoil does not necessarily threaten it. A few months of ever-lower stock prices, however, risks permanently damaging investors' confidence in its foundations," DataTrek said.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">1/2 The bedrock of the "American exceptionalism" trade over the last 15 years has been the virtuous circle connecting stock prices, the allocation of corporate/societal capital, and the US government's economic policies&#8230;&mdash; Nick Colas &amp; Jessica Rabe (DataTrek) (@DataTrekMB) <a href="https://twitter.com/DataTrekMB/status/1909333119456387303?ref_src=twsrc%5Etfw">April 7, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



The sharp selloff in U.S. Treasuries is not indicative of systemic trouble, Treasury Secretary Scott Bessent said Wednesday, calling the move a typical market dislocation driven by leveraged investors unwinding positions — not a sign of deeper instability.



While downplaying domestic risks, Bessent did strike a more hawkish tone on China, suggesting that Beijing could provoke broader global instability if it retaliates against tariffs by weakening its currency.



The U.S. imposed a 104% tariff on Chinese imports, with the impact beginning overnight, while Beijing fired back by raising tariffs on American goods to 84%.



Read now: 



<ul>
<li><a href="https://www.benzinga.com/25/04/44708618/china-retaliates-with-massive-84-tariff-hike-on-us-goods-amid-escalating-trade-war">Xi Jinping Hits Back: China Raises Tariffs On US Goods To 84%, Doubling Down On Trade War</a></li>
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Photo: FOTOGRIN/Shutterstock

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Wall Street's 'American Exceptionalism' Trade Falters As Dollar, Stocks, Bonds All Slide

Xi Jinping&#8216;s China has unveiled a significant hike in retaliatory tariffs on U.S. products, intensifying the ongoing trade war between the world&#8217;s two biggest economies.



What Happened: On Wednesday, China declared that it will raise its reciprocal tariffs on U.S. goods to 84% from the previous 34% from April 10, <a href="https://www.scmp.com/economy/china-economy/article/3305873/china-fires-back-stern-rebuke-trumps-tariff-escalation?module=top_story&amp;pgtype=homepage">reported</a> the South China Morning Post. 



This move comes in the wake of an intensifying trade conflict between the U.S. and China. This comes after the latest U.S. tariff hike — which brings levies on Chinese goods to more than 100% — took effect at the start of April 9.



In response to the new U.S. tariffs, the Ministry of Commerce not only filed a complaint with the World Trade Organization but also added six American companies to its unreliable-entity list. Additionally, it imposed export controls on 12 U.S. firms, prohibiting Chinese companies from supplying them with dual-use items—products that can serve both civilian and military purposes.



"China will firmly defend its interests, multilateral trade system and international economic order," stated the Chinese finance ministry online.



SEE ALSO:&nbsp;<a href="https://benzinga.com/markets/25/04/44706492/trump-predicts-tremendous-thundering-landslide-in-2026-midterms-says-tariffs-will-help-republicans-win-bi" target="_blank" rel="noreferrer noopener">Trump Predicts &#8216;Tremendous, Thundering Landslide&#8217; In 2026 Midterms, Says Tariffs Will Help Republicans Win Big</a>



Why It Matters: This announcement comes on the heels of President Donald Trump&#8216;s <a href="https://www.benzinga.com/markets/equities/25/04/44704005/trumps-104-tariff-on-chinese-imports-sends-stock-futures-plunging-dow-falls-over-500-points">104% tariff on Chinese imports</a>, which sent stock futures plunging and major indexes to significant lows. 



Despite the escalating trade war, many U.S. companies <a href="https://www.benzinga.com/news/global/25/04/44700937/us-companies-stick-with-china-as-trump-tariffs-take-effect-report">have chosen to stick </a>with their operations in China, viewing it as a strategic value. A report commissioned by the U.S. Chamber of Commerce Foundation revealed that a majority of surveyed firms still see value in maintaining or expanding their presence in China, even as they increasingly view it as their biggest geopolitical risk.



This escalating trade conflict is likely to have far-reaching implications on the global economy, and all eyes are on how this situation will unfold in the coming days.



During the U.S. premarket session, U.S.-listed Chinese stocks traded mixed. Baidu Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) and Nio Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>) were in the red, while Xpeng Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPEV#NYSE">XPEV</a>) and Li Auto Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LI#NASDAQ">LI</a>) saw modest gains.



<ul>
<li>READ MORE:&nbsp;<a href="https://benzinga.com/markets/cryptocurrency/25/04/44699720/bitcoin-ethereum-xrp-dogecoin-extend-losses-as-white-house-hammers-chinese-goods-with-104-tariff" target="_blank" rel="noreferrer noopener">Bitcoin, Ethereum, XRP, Dogecoin Extend Losses As White House Hammers Chinese Goods With 104% Tariff &#8211; Benzinga</a></li>
</ul>



Image via Shutterstock



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

BIDU

XPEV

Xi Jinping Hits Back: China Raises Tariffs On US Goods To 84%, Doubling Down On Trade War

Delta Air Lines, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAL#NYSE">DAL</a>) shares are trading higher premarket after the company reported better-than-expected <a target="_blank" href="https://www.benzinga.com/pressreleases/25/04/n44707201/delta-air-lines-announces-march-quarter-2025-financial-results" rel="noreferrer noopener">first-quarter 2025 results</a>.



Delta reported fourth-quarter operating revenue growth of 2% year-over-year to $14.04 billion, beating the consensus of $13.02 billion. Adjusted operating revenue was $12.98 billion (+3.3% YoY)



The adjusted average fuel price was $2.47 per gallon, down from $2.79 in last year&#8217;s quarter. Adjusted EPS was $0.46 (+2% YoY), beating the consensus of $0.38.



Related: <a target="_blank" href="https://www.benzinga.com/25/04/44705362/top-wall-street-forecasters-revamp-delta-air-lines-price-expectations-ahead-of-q1-earnings" rel="noreferrer noopener">Top Wall Street Forecasters Revamp Delta Air Lines Price Expectations Ahead Of Q1 Earnings</a>



Total passenger revenue for the quarter grew 3% year over year to $11.48 billion; cargo revenue grew 17% year over year to $208 million, and Other revenue was $2.352 billion (-4% year over year).



Delta recorded an adjusted operating income of $591 million, down from $640 million YoY, with an adjusted operating margin of 4.6%, down 50 bps.



Adjusted operating expenses increased by 4% YoY to $12.388 billion, and Adjusted Non-fuel costs were $9.875 billion (+7% YoY) for the quarter.



Delta generated an adjusted operating cash flow of $2.44 billion (-1% Y/Y) in the March quarter, and free cash flow stood at $1.28 billion.



As of the March quarter, Delta reported adjusted net debt of $16.9 billion, down $1.1 billion from year-end 2024. Total liquidity was $6.8 billion, including $3.1 billion in undrawn revolver capacity.



The passenger load factor dropped 81.4% from 82.7% last year. DAL&#8217;s Air Traffic Liability ended the quarter at $10 billion.



Also Read: <a target="_blank" href="https://www.benzinga.com/general/travel/25/04/44671680/which-us-airline-is-facing-the-strongest-industry-tailwinds" rel="noreferrer noopener">Which US Airline Faces The Strongest Industry Tailwinds?</a>



Delta&#8217;s Chief Financial Officer, Dan Janki, noted that the company delivered better-than-expected results despite early-year weather challenges. &#8220;Our teams ran a strong operation… enabling us to drive efficiency and deliver non-fuel unit cost growth of up 2.6 percent over prior year,&#8221; he said. Janki added that as Delta reduces capacity growth, it is &#8220;taking incremental action to manage costs,&#8221; and expects non-fuel unit cost growth to align with its long-term target of low-single-digit increases in the second quarter and beyond.



&#8220;With broad economic uncertainty around global trade, growth has largely stalled.&nbsp;In this slower-growth environment, we are protecting margins and cash flow by focusing on what we can control.&nbsp;This includes reducing planned capacity growth in the second half of the year to flat over last year while actively managing costs and capital expenditures,&#8221; commented Ed Bastian, Delta&#8217;s chief executive officer.



&#8220;We expect June quarter profitability of $1.5 to $2 billion.&nbsp;Given the lack of economic clarity, it is premature at this time to provide an updated full-year outlook.&nbsp;Given our position of strength, our bias toward action, and the decline in fuel prices, Delta remains well positioned to deliver solid profitability and free cash flow for the year. I expect that our financial results will continue to lead the industry and validate our strategy to create differentiation and greater financial durability,&#8221; added Bastian.



Also Read: <a target="_blank" href="https://www.benzinga.com/25/04/44634938/airline-earnings-at-risk-as-demand-dips-amid-weak-business-travel-low-transborder-traffic-doge-cuts-analyst-says" rel="noreferrer noopener">Airline Earnings At Risk As Demand Dips Amid Weak Business Travel, Low Transborder Traffic, DOGE Cuts: Analyst Says</a>



Second Quarter 2025 Outlook: DAL&#8217;s total revenue is expected to be down 2% to up 2% over the prior year, with an operating margin of 11%—14%.



Adjusted Earnings per share are forecasted between $1.70 and $2.30 versus the $2.39 estimate.



Delta is not reaffirming its full-year 2025 financial guidance and plans to provide an update later in the year as market visibility improves.



Price Action: DAL shares are trading lower by 0.45% at $35.73 premarket at the last check on Wednesday.



Image via Shutterstock

Earnings

Guidance

Delta Air Lines Wants To Protect Margins And Cash Flow Citing Economic Uncertainty, Does Not Reaffirm FY25 Outlook

U.S. stock futures were volatile on Wednesday after the equities reversed gains on Tuesday following President Donald Trump&#8216;s 104% tariff on China. Futures of major benchmark indices were mixed in premarket.



The White House Press Secretary Karoline Leavitt <a href="https://www.benzinga.com/economics/macro-economic-events/25/04/44698697/markets-reverse-gains-as-trumps-104-china-tariff-announcement-rattles-wall-street">confirmed that Trump&#8217;s retaliatory</a> 104% tariff on Chinese imports would take effect at 12:01 a.m. ET Wednesday. Her remarks triggered a sharp deterioration in market sentiment and reignited fears of a global trade escalation.



Despite growing geopolitical concerns surrounding China, a new U.S. Chamber of Commerce Foundation <a href="https://www.benzinga.com/news/global/25/04/44700937/us-companies-stick-with-china-as-trump-tariffs-take-effect-report">report highlighted by</a> The Wall Street Journal reveals that most surveyed companies still find significant strategic advantages in staying or growing their operations there.



This finding underscores a divergence between Washington&#8217;s &#8220;selective decoupling&#8221; efforts and the deep reliance of corporate America on China&#8217;s manufacturing, workforce, and consumer base.



Major indices were significantly down from recent highs as of Tuesday&#8217;s close. The S&amp;P 500 was 18.95% lower, the Nasdaq 100 was down 23.10%, and the Dow Jones declined 16.48%, following a week of tariff-driven selloffs.



The 10-year Treasury bond yielded 4.35% and the two-year bond was at 3.80%. However, the CME Group's FedWatch&nbsp;<a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">tool</a>‘s projections showed markets pricing a 58.3% likelihood of the Federal Reserve keeping the current interest rates unchanged in its May meeting.



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Dow Jones</td><td>-0.06%</td></tr><tr><td>S&amp;P 500</td><td>0.22%</td></tr><tr><td>Nasdaq 100</td><td>0.64%</td></tr><tr><td>Russell 2000</td><td>-0.17%</td></tr></tbody></table></figure>



The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, were higher in premarket on Wednesday. The SPY was up 0.30% to $497.98, while the QQQ advanced 0.63% to $418.70, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



Cues From Last Session:



Consumer discretionary, materials, and energy sectors led a broad decline in U.S. stocks on Tuesday, as the S&amp;P 500 closed entirely in negative territory.



The selloff intensified after the President&#8217;s 104% tariff.



Among individual tech giants, Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), and Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) saw significant drops, while Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) also traded lower.



In other news, Walgreens Boots Alliance Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WBA#NASDAQ">WBA</a>) reported better-than-expected earnings, and small business optimism hit its lowest point since October 2024.



The Dow Jones index slumped 320 points or 0.84% to 37,645.59, whereas the S&amp;P 500 index fell 1.57% to 4,982.77. Nasdaq Composite declined to end 2.15% lower at 15,267.91, and the small-cap gauge, Russell 2000, tumbled 2.73% to 1,760.71.



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Index</td><td>Performance (+/-)</td><td>Value</td></tr><tr><td>Nasdaq Composite</td><td>-2.15%</td><td>15,267.91</td></tr><tr><td>S&amp;P 500</td><td>-1.57%</td><td>4,982.77</td></tr><tr><td>Dow Jones</td><td>-0.84%</td><td>37,645.59</td></tr><tr><td>Russell 2000</td><td>-2.73%</td><td>1,760.71</td></tr></tbody></table></figure>



Insights From Analysts:



In this environment of heightened uncertainty, Julia Khandoshko, CEO at European broker Mind Money, advises investors to focus on capital preservation rather than chasing high returns.



&#8220;The most rational strategy in the short term is to focus on liquidity, reliable fixed-income instruments, and safe haven assets such as gold. This is not an attempt to make money but a need to preserve capital in conditions of high uncertainty,&#8221; she adds.



Even nations currently enjoying a trade surplus shouldn&#8217;t be complacent, warns Khandoshko. She points to the danger of stagflation – a damaging combination of stalled economic growth and ongoing inflation – using Japan&#8217;s long-lasting difficulties as a stark example.



The widening 3-year SOFR swap spread is signaling <a href="https://www.benzinga.com/government/regulations/25/04/44705659/cathie-wood-points-to-serious-liquidity-issues-as-overnight-borrowing-rate-spreads-widen-o">growing liquidity problems</a> within the U.S. banking system, according to Ark Invest CEO Cathie Wood. She argues that this crisis necessitates swift solutions, including a trade agreement and aggressive Federal Reserve intervention, emphasizing the urgency with &#8220;No more time to waste.&#8221;



This spread, a key indicator of U.S. banking liquidity, represents the difference between the fixed rate in a SOFR-based swap and the yield on a government bond of the same maturity.



SOFR, the Secured Overnight Financing Rate, is the benchmark reflecting the cost of overnight cash borrowing used across various financial transactions, and its widening spread adds to existing concerns about emerging liquidity issues in the U.S. market.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">As Zerohedge notes, this swap spread is suggesting serious liquidity issues in the US banking system. This crisis is calling out for some kind of Mar-a-Lago Accord on free trade, in tandem with serious support from the Fed? No more time to waste. <a href="https://t.co/5VXYqLJemJ">https://t.co/5VXYqLJemJ</a>&mdash; Cathie Wood (@CathieDWood) <a href="https://twitter.com/CathieDWood/status/1909816910033678801?ref_src=twsrc%5Etfw">April 9, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Meanwhile, Ed Yardeni of Yardeni Research suggests that "Fixed-income investors may be starting to worry that the Chinese and other foreigners might start selling their U.S. Treasuries," after Trump levied 104% tariff duties on China after the latter's retaliation.



Adding to the market unease, credit markets are exhibiting increasing strain, evidenced by a rapidly widening yield spread between high-yield corporate bonds and the 10-year Treasury.



Data from Yardeni indicates this spread reached 407 basis points as of April 7th, signaling declining investor confidence and growing concerns about an economic slowdown or potential recession.



"The good news is that the Fed Put will probably make a quick comeback if this happens," said Yardeni.



See Also: <a href="https://www.benzinga.com/money/how-to-trade-futures">How to Trade Futures</a> 



Upcoming Economic Data



Here&#8217;s what investors will keep an eye on Wednesday:



<ul>
<li>February&#8217;s wholesale inventories data will be released by 10:00 a.m., and Richmond Fed President Tom Barkin will speak at 11:00 a.m. ET.</li>
</ul>



<ul>
<li>Minutes of Fed&#8217;s March FOMC meeting will be out by 2:00 p.m. ET.</li>
</ul>



Stocks In Focus:



<ul>
<li>Delta Air Lines Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAL#NYSE">DAL</a>) declined 1.11% in premarket on Tuesday before the opening bell. Analysts expect a quarterly earnings of 38 cents per share on revenue of $13.02 billion.</li>



<li>Simply Good Foods Co. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMPL#NASDAQ">SMPL</a>) was up 1.45% as Wall Street expects it to report earnings of 40 cents per share on revenue of $354.43 million before the opening bell.</li>



<li>Constellation Brands Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STZ#NYSE">STZ</a>) was down 1.10% ahead of its earnings call after the closing bell. Analysts expect a quarterly earnings of $2.28 per share on revenue of $2.13 billion.</li>



<li>Kura Sushi USA Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KRUS#NASDAQ">KRUS</a>) dropped 3.28% after posting downbeat results for its second quarter. The company also said it sees FY25 total sales of $275 million to $279 million, versus market estimates of $280.741 million.</li>



<li>Aehr Test Systems (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AEHR#NASDAQ">AEHR</a>) climbed 1.92% after posting better-than-expected earnings and sales results for its third quarter on Tuesday.</li>



<li>Redwire Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RDW#NYSE">RDW</a>) was 2.98% higher after it announced to jointly pursue commercial lunar missions with ispace U.S., including NASA CLPS, leveraging Redwire&#8217;s space infrastructure and ispace U.S.&#8217;s lunar transportation.</li>



<li>Marsh &amp; McLennan Companies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MMC#NYSE">MMC</a>) jumped 17.83% as it announced the acquisition of Arthur Hall Insurance on April 2.</li>



<li>Vincerx Pharma Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VINC#NASDAQ">VINC</a>) plunged 52.39% after disclosing that it has terminated the previously announced non-binding Letter of Intent with Global Digital Holdings regarding a potential merger.</li>



<li>Cartesian Therapeutics Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RNAC#NASDAQ">RNAC</a>) tumbled 36.97% after reporting 12-month data for lead cell therapy in myasthenia gravis patients.</li>
</ul>



Commodities, Gold, And Global Equity Markets:



Crude oil futures were trading lower in the early New York session by 2.59% to hover around $57.82 per barrel.



Gold Spot US Dollar advanced 2.04% to hover around $3,043.09 per ounce. Its fresh record high stood at $3,168.04 per ounce. The U.S. Dollar Index spot was lower by 0.49% at the 102.450 level.



Asian markets were mostly lower on Wednesday. Except for China&#8217;s CSI 300 and Hong Kong's Hang Seng index, India's S&amp;P BSE Sensex, Japan's Nikkei 225, Australia's ASX 200, and South Korea's Kospi index declined. European markets were also lower in early trade.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/government/regulations/25/04/44705659/cathie-wood-points-to-serious-liquidity-issues-as-overnight-borrowing-rate-spreads-widen-on-spiking-treasury-yields-this-crisis-is-calling-out-for-some-kind-of-mar-a-lago-accord">Cathie Wood Points To &#8216;Serious Liquidity Issues&#8217; As Overnight Borrowing Rate Spreads Widen On Spiking Treasury Yields</a></li>
</ul>



Photo courtesy: Shutterstock

Futures

Pre-Market Outlook

Trading Ideas

AEHR

KRUS

RNAC

SMPL

VINC

US Stocks Futures Trade Mixed Ahead Of Opening Bell: 'Preserve Capital In Conditions Of High Uncertainty,' Says Expert

President Donald Trump has declared that his administration is on the brink of imposing a significant tariff on <a href="https://in.benzinga.com/markets/25/04/44627820/trumps-reciprocal-tariffs-on-india-exempt-pharma-easing-mark-cubans-price-hike-concerns">pharmaceuticals imported from foreign countries.</a>



What Happened: President Trump, on Tuesday, disclosed plans for a &#8220;major tariff&#8221; on foreign pharmaceuticals. Trump is hopeful that this move will prompt drug companies to shift their operations to the U.S., <a href="https://www.theguardian.com/australia-news/2025/apr/09/donald-trump-flags-major-tariff-on-pharmaceuticals-as-us-senator-criticises-whack-on-australia">reported</a> The Guardian.



&#8220;We&#8217;re going to be announcing very shortly a major tariff on pharmaceuticals&#8230; when they hear that they will leave China, they will leave other places because&#8230; most of their product is sold here,&#8221; Trump expressed at a National Republican Congressional Committee dinner.



Despite exempting pharmaceuticals from the recent round of reciprocal tariffs, Trump has been hinting for a long time that the drug industry would be a target. The President is of the view that the tariff will drive drug companies to return to the U.S., considering it is a significant market for their products. &#8220;The advantage we have over everybody is that we&#8217;re the big market. So we&#8217;re going to be announcing very shortly a major tariff on pharmaceuticals,&#8221; Trump added.



The President, however, did not divulge any specifics regarding the tariff increase or its potential impact.



Pharmaceutical stocks across the globe, including GlaxoSmithKline, Sanofi and India&#8217;s Teva Pharmaceuticals, tumbled on Wednesday.



In the U.S. pharmaceutical stocks, Pfizer (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PFE#NYSE">PFE</a>) declined 3.5%, while Eli Lilly And Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LLY#NYSE">LLY</a>) lost 3.2%. AstraZeneca Plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AZN#NASDAQ">AZN</a>) fell 1.35%, while Amgen Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMGN#NASDAQ">AMGN</a>) and Merck &amp; Co. Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MRK#NYSE">MRK</a>) dropped 2.94% and 2.75%, respectively, during the Wednesday pre-market trading session.



SEE ALSO:&nbsp;<a href="https://benzinga.com/markets/25/04/44706492/trump-predicts-tremendous-thundering-landslide-in-2026-midterms-says-tariffs-will-help-republicans-win-bi" target="_blank" rel="noreferrer noopener">Trump Predicts &#8216;Tremendous, Thundering Landslide&#8217; In 2026 Midterms, Says Tariffs Will Help Republicans Win Big</a>



Why It Matters: The $1.7 trillion revenue prescription drug industry has demonstrated a strong resilience to tariffs. The U.S., being the largest and most profitable market globally for prescription drugs and generic products, imports most of these from overseas. In 2024, drug imports reached $213 billion, more than two and a half times the total 10 years earlier. The proposed tariff could, in theory, help bring business back onshore.



However, companies like&nbsp;AstraZeneca Plc and&nbsp;Pfizer&nbsp;have extensive global manufacturing networks, including Ireland, Germany, Canada, the UK, and the U.S and are not restricted to India and China. Sources told Reuters that it could take up to 10 years to build and equip a factory in the U.S., due to stringent regulatory requirements from the U.S. Food and Drug Administration (FDA). Therefore, Trump&#8217;s tariff might necessitate drugmakers to overhaul a complex, expensive manufacturing system.



Meanwhile, after Trump indicated major tariffs on pharmaceuticals, EU drugmakers have urged European Commission President Ursula von der Leyen to take "rapid and radical action" to address the growing "risk of an exodus" to the U.S., following a meeting in Brussels.



<ul>
<li>READ MORE: <a href="https://benzinga.com/25/04/44705972/ford-motor-general-motors-to-witness-higher-demand-as-american-automotives-reap-the-fruit-of-protectionism-says-e" target="_blank" rel="noreferrer noopener">Ford, GM To Witness &#8216;Higher Demand&#8217; As American Carmakers Set To &#8216;Reap The Fruit Of Protectionism,&#8217; Says Expert: Here&#8217;s A List Of Potential Gainers And Losers From Trump Tariffs</a></li>
</ul>



Image via Shutterstock



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

AMGN

Trump Hints At 'Major Tariff' On Imported Pharmaceuticals: Pfizer, Eli Lilly, Amgen And Other Stocks Tumble In Wednesday Pre-Market

Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) investors have &#8220;slid into panic mode&#8221; with shares dropping 23% since Apr. 2, according to Deepwater Asset Management Managing Partner Gene Munster, who warns the situation could deteriorate further amid escalating U.S.-China tensions.



What Happened: &#8220;It&#8217;s going to get ugly with China over the next month, which will intensify the panic,&#8221; Munster wrote Tuesday on X, addressing Apple&#8217;s dramatic selloff as the White House confirmed President Donald Trump&#8216;s 104% retaliatory tariff on Chinese <a href="https://www.benzinga.com/markets/equities/25/04/44704005/trumps-104-tariff-on-chinese-imports-sends-stock-futures-plunging-dow-falls-over-500-points">imports would take effect Wednesday</a>.



Apple shares fell 4.98% to $172.42 on Tuesday as markets reversed earlier gains following the tariff announcement, with investors concerned about potential supply chain disruptions and weakened sales in China.



Despite near-term challenges, Munster remains optimistic about Apple's long-term outlook. He believes that over the next three months, Apple will be &#8220;largely spared&#8221; from the impact of tariffs due to CEO Tim Cook's &#8220;favorable&#8221; relationships with both Trump and Chinese President Xi Jinping.



Munster also suggests that current recession fears are &#8220;already priced in.&#8221;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Over the past five trading days <a href="https://twitter.com/search?q=%24AAPL&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$AAPL</a> investors have slid into panic mode. Shares are down 23% since April 2. • It&#39;s going to get ugly with China over the next month, which will intensify the panic. • My eyes are on the horizon. Looking out 3 months from now, I believe Apple…&mdash; Gene Munster (@munster_gene) <a href="https://twitter.com/munster_gene/status/1909707386706710929?ref_src=twsrc%5Etfw">April 8, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



See Also: <a href="https://www.benzinga.com/markets/equities/25/04/44704930/trump-says-he-warned-tsmc-of-100-tariff-if-it-doesnt-manufacture-in-us-these-chip-companies-are-loaded">Trump Threatened TSMC He&#8217;d Impose Up To 100% Tariffs If It Didn&#8217;t Manufacture Chips In US: &#8216;These Chip Companies Are Loaded&#8217;</a>



Why It Matters: The tariffs have reportedly driven <a href="https://in.benzinga.com/media/25/04/44679666/apple-customers-flock-to-stores-as-tariffs-threaten-to-drive-iphone-prices-up-by-45-report">U.S. consumers to Apple stores seeking to purchase iPhones</a> before potential price increases. According to TechInsights, manufacturing costs could rise by more than 45%, potentially increasing iPhone prices from $580 to $850 per unit.



Bank of America analyst Wamsi Mohan sees Apple&#8217;s valuation <a href="https://in.benzinga.com/analyst-ratings/analyst-color/25/04/44696168/apple-is-a-buying-opportunity-again-as-key-valuation-level-flashes-green-bank-of-america-says">compression as a buying opportunity</a>, noting the company&#8217;s forward price-to-earnings ratio of about 21 times has historically signaled strong future returns, averaging 17% gains one year after similar drops.



&#8220;This storm will pass,&#8221; Munster said. &#8220;Apple&#8217;s brand loyalty remains strong—and will drive an Apple Intelligence upgrade cycle in FY26.&#8221;



Apple performs well on momentum and quality metrics but lags in short- to long-term price trends, according to data from Benzinga Edge Stock Rankings. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">Sign up to learn more</a>.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/personal-finance/25/04/44703064/shaq-says-billionaire-magic-johnson-gave-him-the-best-money-advice-being-famous-is-cool-but-at-some-point-you-want-to-start-owning-things" target="_blank" rel="noreferrer noopener">Shaq Says Billionaire Magic Johnson Gave Him the ‘Best' Money Advice — Being Famous Is Cool, ‘But at Some Point, You Want to Start Owning Things'</a></li>
</ul>



Image via Shutterstock



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Apple Stock Nosediving Since 'Liberation Day' Tariffs Has Created Panic, Says Gene Munster: Predicts Tim Cook's 'Favorable' Relationship With Trump, Xi Jinping Will Rescue iPhone-Maker

As Washington doubles down on its trade war with China, and tariffs <a href="https://benzinga.com/markets/equities/25/04/44704005/trumps-104-tariff-on-chinese-imports-sends-stock-futures-plunging-dow-falls-over-500-points">now going as high as 104%</a>, some leading experts believe that the Middle Kingdom might have an ace up its sleeve, that could hit the United States where it hurts most—Services.



A vast majority of U.S. imports from China are tangible goods, whereas its exports to the country largely comprise services, and this includes tech solutions, consulting services, law firms, and even Hollywood movies, among others. China, in fact, runs a $32 billion deficit with the U.S. on services.



What Happened: Two widely followed bloggers in China with connections within the Chinese Communist Party have released a seemingly identical list of measures that the country is planning in retaliation against the tariffs imposed by the Trump Administration, <a href="https://www.bloomberg.com/news/articles/2025-04-08/influential-china-bloggers-post-options-to-hit-back-at-trump">reported</a> Bloomberg.



Among the list of measures shared by Ren Yi, the grandson of a former Guangdong province Communist Party chief, and Liu Hong, a senior journalist at Xinhua, the state-run news agency, includes a plan to &#8220;reduce or ban the import of U.S.-made films.&#8221;



See More: <a href="https://www.benzinga.com/news/global/25/04/44705797/high-stakes-high-yields-investors-puzzled-with-us-treasuries-defiant-run-amid-market-turmoil">US Treasuries Defiant Run Amid Trump Tariff Turmoil Puzzles Investors— Hedge Funds Selling Or China Dumping?</a>



Besides this, China plans to target the U.S. services sector in several other ways, such as restricting American companies from taking part in Chinese government procurement processes and limiting the cooperation between Chinese companies and U.S. law firms and consultancies.



Why It Matters: In China&#8217;s $17.7 billion box office, Hollywood movies managed to gross a little under $600 million in 2024, while the total U.S. and Canadian box office numbers during the same period stood at $8.6 billion. So, the move is expected to have a sizable impact on the industry.



Stocks like Walt Disney Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) will be in focus considering its globalized IP, with <a href="https://www.matthewball.co/all/china-marvel-and-the-uncertain-future-of-the-global-franchise">several multi-million dollar hits</a> over the years. It also has a sizable merchandising and theme park business in China, which will be impacted. Warner Bros Discovery Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WBD#NASDAQ">WBD</a>) is next in line, with several international licensing deals in the country that could be cut short.



However, the hardest hit could be IMAX Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IMAX#NYSE">IMAX</a>), which derives 23% of its revenue from China, where 45% of all <a href="https://thebambooworks.com/imax-china-roars-into-year-of-the-snake-after-weak-performance-in-2024/">IMAX screens</a> are located.



Several other companies provide software, consulting, and related services in the Mainland, such as Salesforce Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NYSE">CRM</a>) partnering with Alibaba Group Holding Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) to <a href="https://www.theregister.com/2023/11/06/asia_in_brief/">offer services</a> in the country, however, given the opaqueness of the nation&#8217;s financial markets, and the kind of barriers imposed, there isn&#8217;t a lot of clarity on the kind of impact a tariff on services would have. 



Read More: <a href="https://www.benzinga.com/news/global/25/04/44706519/apple-stock-nosediving-since-liberation-day-tariffs-has-created-panic-says-gene-munster-predicts-tim-cooks-favorable-relationship-with-trump-xi-jinping-will-rescue-iphone-maker">Apple Stock Nosediving Since &#8216;Liberation Day&#8217; Tariffs Created Panic, Says Gene Munster: Predicts Tim Cook&#8217;s &#8216;Favorable&#8217; Relationship With Trump, Xi Jinping Will Rescue iPhone-Maker</a>



Photo: Shutterstock

General

IMAX

China May Hit US Where It Hurts Amid Trump's Tariff War — Services Trade In Crosshairs, With Walt Disney, IMAX And Warner Bros. Discovery In Focus

On Tuesday, April 8th, U.S. markets closed sharply lower as the S&amp;P 500 plunged below 5,000 for the first time in nearly a year, capping a four-day loss of $5.83 trillion—the steepest since the index&#8217;s inception in the 1950s. Early gains evaporated as hopes for delayed U.S. tariffs faded, and looming 104% duties on Chinese goods fueled mounting fears of a global economic downturn.



In economic data, the NFIB Small Business Optimism Index fell by 3.3 points to 97.4 in March, marking its lowest level since October 2024 and missing expectations of 101.3.



All sectors within the S&amp;P 500 ended Tuesday in the red, with consumer discretionary, materials, and energy stocks leading the day&#8217;s declines.



The Dow Jones Industrial Average declined 0.84% to 37,645.59, the S&amp;P 500 dropped 1.57% to 4,982.77, and the Nasdaq Composite fell 2.15% to close at 15,267.91.



Asia Markets Today



<ul>
<li>On Wednesday, Japan&#8217;s Nikkei 225 closed 3.78% lower at 31,764.00, led by losses in the Paper &amp; Pulp, Transport, and Communication sectors amid trade war fears, tech stock losses, a rising yen, and widespread panic selling. Nearly 90% of stocks declined as investors grappled with sharp volatility and deepening global economic uncertainty.</li>



<li>Australia&#8217;s S&amp;P/ASX 200 was down 1.80% and closed at 7,375.00, led by losses in the Energy, Metals &amp; Mining and Resources sectors.</li>



<li>India&#8217;s Nifty 50 was down 0.59% to 22,402.45, and Nifty 500 slid 0.57% to 20,363.10.</li>



<li>The RBI cut interest rates by 25 basis points to 6% and shifted to an &#8220;accommodative&#8221; stance, citing easing inflation and slowing growth. GDP forecast was lowered amid global trade tensions.</li>



<li>China&#8217;s Shanghai Composite rose 1.31% to 3,186.81, and Shanghai Shenzhen CSI 300 increased 0.99% to 3,686.79.</li>



<li>Hong Kong&#8217;s Hang Seng Index gained 0.68% to 20,264.49.</li>
</ul>



Eurozone at 05:45 AM ET



<ul>
<li>The European STOXX 50 was down 2.77%.</li>



<li>Germany&#8217;s DAX declined 2.85%.</li>



<li>France&#8217;s CAC 40 fell 2.77%.</li>



<li>U.K.&#8217;s FTSE 100 index traded lower by 2.50%.</li>



<li>European shares fell sharply on Wednesday as steep U.S. tariffs reignited trade war concerns, dragging markets lower and pushing the STOXX 600 closer to bear territory. Rate-sensitive banks, pharmaceutical giants, energy and mining stocks led the decline.</li>
</ul>



Commodities at 05:45 AM ET



<ul>
<li>Crude Oil WTI was trading lower by 3.89% at $57.25/bbl, and Brent was down 3.82% at $60.42/bbl.</li>



<li>Oil prices fell to a multi-year low Wednesday, marking their worst five-day losing streak in years. Global recession fears deepened amid escalating U.S.-China trade tensions and rising supply outlooks.</li>



<li>Natural Gas rose 0.55% to $3.482.</li>



<li>Gold was trading higher by 2.44% at $3,062.64, Silver was up 2.12% to $30.320, and Copper rose 2.21% to $4.2355.</li>
</ul>



U.S. Futures at 05:45 AM ET



Dow futures were down 0.40%, S&amp;P 500 futures declined 0.22%, and Nasdaq 100 futures rose 0.21%.



Forex at 05:45 AM ET



<ul>
<li>The U.S. Dollar Index declined 0.64% to 102.31, USD/JPY was down 0.70% to 145.23, and USD/AUD declined 0.95% to 1.6626.</li>



<li>The U.S. dollar slumped after President Trump&#8217;s steep tariff hike on China intensified recession fears. Markets now expect deeper Federal Reserve rate cuts, pressuring the greenback. The Dollar Index fell to levels not seen since September 2024, while safe-haven currencies like the yen and euro strengthened.</li>
</ul>



Photo via Shutterstock

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