S&P 500 Closes Higher, But Trump’s Tariff Shock Sinks Futures Ahead

S&P 500 Gains on April 2 Despite Underlying Market Jitters

On Wednesday, April 2, 2025, the S&P 500 Index closed at 5,670.97, rising 37.90 points (0.67%). The index traded within a range of 5,571.48 to 5,695.31, reflecting cautious optimism across markets earlier in the day. Key drivers of the positive close included strength in financials and consumer discretionary stocks, along with easing concerns over interest rate hikes after dovish commentary from several Federal Reserve officials.

Despite the green close, many analysts noted that investor sentiment was already fragile, with looming geopolitical risks and inflationary pressures continuing to cast a shadow over equity markets. The day’s modest gains came ahead of a surprise policy bombshell that would soon roil markets after the bell.

Trump’s Tariff Blitz Slams Futures and Sets Stage for Sell-Off

After U.S. markets closed, former President Donald Trump announced sweeping new import tariffs as part of a so-called “Liberation Day” economic plan. These included a 10% universal tariff on all imported goods and dramatically higher rates for countries like China (34%), Japan (24%), India (26%), and Vietnam (46%). Additionally, all car imports will now face a 25% levy, a move expected to directly impact global automakers and U.S. car prices.

The market’s reaction was immediate. S&P 500 futures dropped over 3.3% in after-hours trading, signaling a potentially rocky start to the next trading session. Tech and manufacturing giants such as Apple, Tesla, Nvidia, and Taiwan Semiconductor faced intense after-hours selling, as investors digested the implications of renewed trade tensions and disrupted supply chains.

Economists and analysts voiced concerns that these tariffs could stoke inflation and slow economic growth, while also increasing the risk of retaliatory measures from major U.S. trading partners. Goldman Sachs has already warned that this policy shift could drag down corporate earnings and lead to a broader market correction, especially if global trade relations deteriorate further.

For deeper insight, check out Business Insider’s breakdown of how tariffs are affecting market outlooks.

In global markets, the Nikkei 225 and ASX 200 plunged in early trading, with traders seeking safety in assets like gold and the Japanese yen. The abrupt nature of the announcement has heightened volatility expectations, and investors are now bracing for a turbulent session ahead.

Stay updated on real-time reactions via Investors.com.