United States major benchmark averages finished higher on Wednesday (Thursday AEDT), with traders monitoring a wave of volatility after the close as President Donald Trump launched his anticipated tariff rollout.
The Dow Jones Industrial Average added 235.4 points, or 0.6%, settling at 42,225.3, the S&P 500 advanced 0.7% to 5,671.0, while the Nasdaq Composite gained 151.2 points 0.9% to close at 17,601.1.
In after-hours trading, however, futures contracts retreated as Trump announced broad tariffs starting at 10%, with higher rates for certain countries.
By 8:00 am AEDT (9:00 pm GMT), Dow futures were down 0.5%, S&P 500 futures lost 1.5%, while Nasdaq-100 futures shed 2%.
Nike fell 2.1%, General Motors was down 2%, Tesla shed 4.2%, Nvidia dipped 4.1%, and Meta Platforms declined 4%.
Trump indicated during his Rose Garden address that the new tariffs would not be “fully reciprocal” due to non-monetary trade barriers imposed by other nations.
“We will charge them approximately half of what they are and have been charging us,” he stated, adding that the rate accounts for “all their tariffs, non-monetary barriers, and other forms of cheating”.
Treasury Secretary Scott Bessent confirmed to lawmakers that the new tariffs would serve as a cap, meaning the announced rates would be the maximum, with potential reductions available if trade partners take corrective steps.
During the regular session, Tesla jumped 5.3% following reports that Trump signalled Elon Musk would step back from his advisory role in the coming months.
In the bond market, the 10-year Treasury yield stood at 4.136%, while the 2-year yield was at 3.856%.
