Wall Street ended Wednesday on a high note despite market jitters ahead of President Donald Trump’s widely anticipated rollout of new reciprocal tariffs. The Dow Jones Industrial Average climbed 235 points, or 0.56%, while the S&P 500 rose 0.67% and the tech-heavy Nasdaq Composite added 0.87%.
The rally came after a volatile trading session where the S&P 500 briefly dropped more than 1% before rebounding. Tesla led major tech stocks with a sharp 6% surge, fueled by reports that Trump informed his cabinet that Tesla CEO Elon Musk would step back from his advisory role.
The upbeat close comes just hours before Trump is set to announce a sweeping set of import tariffs at a Rose Garden event scheduled for 4 p.m. ET. The White House has labeled the plan “Make America Wealthy Again,” though key details—such as tariff rates and targeted sectors—remain under wraps. Officials have confirmed, however, that the duties will “be effective immediately” once unveiled.
Markets remain cautious amid uncertainty. Treasury Secretary Scott Bessent reportedly told lawmakers that today’s tariffs will serve as a “cap,” implying the initial figures represent the maximum threshold. This approach could allow for negotiation-based reductions with trade partners.
Concerns still linger about economic impact and global retaliation. Bloomberg reported that the administration is considering several tariff structures, with some proposals suggesting duties as high as 20% on most U.S. imports. Still, no final decision had been made as of Tuesday.
“Markets can handle bad news,” said Jan Szilagyi, CEO of Reflexivity, “but the unpredictability of this situation makes it hard to model outcomes—especially with global retaliation in play.”
Analysts say investors are hoping for a softer tariff rollout than what has been floated, as global trade tensions have already pressured stocks in recent weeks. The S&P 500 has posted losses in five of the last six weeks.
As the announcement looms, all eyes are on whether Trump’s aggressive trade posture will escalate tensions or prompt diplomatic recalibration among key U.S. trade partners.
