US Stocks Open Lower Amid Tariff Threats and Fed Minutes
US stocks opened lower on Wednesday as investors grappled with President Trump's latest round of tariffs and awaited the release of Federal Reserve minutes for clues on future monetary policy.
The benchmark S&P 500 (^GSPC) and tech-heavy Nasdaq Composite (^IXIC) each fell approximately 2%, while the Dow Jones Industrial Average (^DJI) declined by 0.3%.
Markets remain in a wait-and-see mode, awaiting the full impact of President Trump's proposed tariffs. However, stocks have remained resilient, with the S&P 500 reaching a fresh record high on Tuesday. This indicates that markets may weather the storm of Trump's trade policy overhaul.
Another tariff threat emerged late Tuesday when the president indicated additional duties on automobiles, semiconductors, and pharmaceuticals. A flat tariff "around 25%" would apply to all foreign automakers and would be implemented as early as April 2.
Investors are proceeding cautiously ahead of the release of the Federal Open Market Committee (FOMC) meeting minutes from the January meeting. The focus is on policymakers' assessments of the potential inflationary impact of Trump's tariffs and its implications for interest rate cuts.
In earnings news, Etsy (ETSY) released disappointing results earlier on Wednesday, leading to a decline in its stock price. Microsoft (MSFT) and Apple (AAPL) are expected to make product announcements later in the day.
Other key highlights:
* Alibaba (BABA) is reportedly in talks to invest in Chinese AI chatbot company DeepSeek.
* Electric-vehicle manufacturer Nikola (NKLA) has filed for bankruptcy, marking the end of its struggles.
* European stocks retreated on Wednesday due to disappointing earnings reports and concerns over Trump's tariff announcements.
* Oil prices rose amid the ongoing conflict in Ukraine, with markets monitoring US-Russian peace talks.