Wall Street jumps despite tariff fallout, tech leading rebound
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The news: US shares rebounded Tuesday (Wednesday AEST), with major indexes gaining roughly 2%, recovering from a sharp selloff driven by President Trump’s criticism of Fed Chair Jerome Powell and tariffs.
The numbers: The Dow rose 2.06%, the S&P 500 was 2.07% higher, and the Nasdaq 2.34% in late morning, led by gains in big tech stocks and a 7% jump in 3M after the US conglomerate beat profit expectations.
Treasury yields edged lower and gold surged past USD3,500 ($5,480) a troy ounce for the first time before paring back. The Cboe Volatility Index retreated to around 32 and Bitcoin rose above USD90,000.
The context: The rebound came even as fresh signs emerged of the Trump administration’s tariff impact.
Aerospace giant RTX and GE Aerospace said they expect a USD850 million and USD500 million financial blow respectively from Trump’s tariffs. Kimberly-Clark cut its profit guidance for the year, attributing the weaker forecast in part to a changing “global geopolitical landscape.”
The IMF slashed its global and US growth forecast for 2025 to 2.8% and 1.8%, respectively, for 2025 to 1.8%, citing heightened financial stability risks from the trade war.
Meanwhile, Tesla shares climbed nearly 5% ahead of its earnings results due after the market close.
The sources: Bloomberg, The Wall Street Journal
