Investing
-
The U.S. and China announced they will be suspending reciprocal tariffs on each other’s goods. Chinese goods imported into America will still retain prior tariffs, bringing their total to 30% (from a prior level of around 125%).
American goods shipped to China will still face a 10% tariff.
-
Stocks are jumping on the news. The Nasdaq now trades for about the same levels it did in mid-January and futures indicate it could open up around 4% higher this morning.
-
If the whipsaw in markets has left you confused and you’re wondering if there’s still opportunity in the markets from today’s prices, why not meet with a financial advisor near you for a complete portfolio review? Click here to get started today. (Sponsored)
Live Updates
Live Coverage
Updates appear automatically as they are published.
11:28 am
Markets remain up today with the Nasdaq up 3.5% as of 11:30 a.m. ET.
Yet, gains are uniform across the board. For example, both the Utilities and Consumer Staples sectors are down today. Investors are switching out of ‘safe havens’ and back into more ‘risky’ sectors relying on growth expectations.
Along those lines, the top two performing sectors are consumer discretionary (up 4.35%) and technology (up 3.69%).
9:26 am
The stock market is about to open for the day and shortly before the open the Nasdaq is pointing to a 3.9% open. The S&P 500 is up 3% while the Dow Jones is up 2.6%.
8:29 am
While markets will see big gains on Monday following the announcement of an initial trade deal with China, not all industries are in the green on Monday morning.
Healthcare stocks are down across the board after Trump vowed to cut the price of prescription drugs. Eli Lilly (NYSE: LLY) is down 3.4% while Johnson & Johnson (NYSE JNJ) shares are down 2.75% in pre-market trading.
7:30 am
What stocks are up the most in pre-market trading? Let’s look at some of the biggest names:
- Apple (Nasdaq: AAPL): Up 6.37%
- NVIDIA (Nasdaq: NVDA): Up 4.75%
- Tesla (Nasdaq: TSLA): Up 7.81%
- Amazon (Nasdaq: AMZN): Up 7.57%
- Meta (Nasdaq: META): Up 5.66%
Among non-Magnificent 7 stocks.
- Nike (NYSE: NKE): Up 6.07%
- Starbucks (Nasdaq: SBUX): Up 4.36%
- Boeing (NYSE: BA): Up 2.92%
What a difference a couple of months makes. After the Nasdaq Composite slid as much as 24% mid-February to the beginning of April, the index is up 4.14% in pre-market trading. That returns the Nasdaq to levels last seen in mid-January, shortly before Donald Trump’s inauguration.
Here’s a check at major indexes as of 7:15 a.m. in pre-market trading:
- Dow Jones Industrial Average: +1084 (+2.62%)
- S&P 500: +185.75 (+3.26%)
- Nasdaq: +846.25 (+4.21%)
The big news driving markets forward today is the announcement of a trade deal with China. Let’s dig into the details.
The Details on the China Trade Deal
The headline on the U.S. trade deal with China is that ‘reciprocal’ tariffs announced on April 2nd have been paused for 90 days. That doesn’t mean all tariffs will be removed, however. The U.S. base rate of 10% tariffs on China as well as a special 20% ‘fentanyl tariff’ will remain, meaning that Chinese goods will face up to a 30% tariff.
U.S. goods entering China will still face a 10% tariff, as well.
The pause comes after delegations from the United States and China met in Switzerland this weekend. Markets are cheering the news as China was seen as the major adversary against the United States in a trade war that began heating up in mid-February. If the U.S. can strike a deal with China, the belief is that tariff pressures will dramatically ease as it strikes agreements with other countries across the world. Earlier in the week, the United States had announced another deal with the United Kingdom.
One question facing investors next will be whether stocks are now to richly priced. After all, the Nasdaq now trades back to where it was in mid-January despite economic forecasts having deteriorated since then. Unfortunately, if you’ve been on the sidelines you’ve missed your ‘buy the dip’ opportunity.
At least, for now.
It’s Your Money, Your Future—Own It (sponsor)
Retirement can be daunting, but it doesn’t need to be.
Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!
Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.