Wall Street stages comeback as Trump says 'remain calm' despite fresh tariff shocks from China and EU

Bond markets also reflected the strain, with the yield on the 10-year Treasury spiking to 4.37 percent — more than 10 basis points higher on the day — after dipping below 4 percent earlier in the week.

Wall Street clawed back early losses on Wednesday, with major indexes inching higher despite a fresh wave of tariff-related jitters that rattled markets at the open.

The S&P 500 rose 0.5 percent, while the tech-heavy Nasdaq Composite led the rebound with a 1.31 percent gain. The Dow Jones Industrial Average added 90 points, or 0.3 percent, after falling sharply at the start of the session.

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Adding to the effort to soothe nerves, President Donald Trump took to Truth Social shortly after the opening, urging investors to “remain calm,” calling it “a great time to buy.”

The bounce came even as trade tensions deepened. China announced an 84 percent tariff on U.S. goods, set to take effect Thursday. The move came hours after Washington’s own 104 percent levy on Chinese imports kicked in just after midnight, marking another sharp turn in the ongoing standoff between the world’s two largest economies.

Adding to the pressure, the European Union approved its first wave of retaliatory tariffs against the U.S., in response to Washington’s steel and aluminum duties. The measures — set to take effect April 15 — target a broad range of American goods and were cleared by all 27 member states.

JPMorgan Chase CEO Jamie Dimon warned that a recession was now a "likely outcome" of the tariff conflict. The pressure was visible in the auto sector. Shares of Ford dropped over 2 percent, while General Motors fell 1 percent.

Read more: China raises tariffs on US imports to 84%, Wall Street Futures plunge nearly 2%

Canada, responding to U.S. import duties, said it will impose 25 percent tariffs on American-made vehicles — including some that meet USMCA requirements but contain non-North American parts.

The latest losses cap a bruising four-day stretch for Wall Street. The Dow has shed more than 4,500 points in that time, while the S&P 500 has slumped 12 percent. The Nasdaq is down over 13 percent.

Bond markets also reflected the strain, with the yield on the 10-year Treasury spiking to 4.37 percent — more than 10 basis points higher on the day — after dipping below 4 percent earlier in the week.

Given the widespread tension, European markets slumped on Wednesday, wiping out the previous session’s gains as U.S. tariffs targeting specific countries kicked in, jolting investor sentiment across the region.

The pan-European Stoxx 600 tumbled 4 percent by 1:50 p.m. in London, with a sea of red across all sectors and major indices. Healthcare stocks led the decline with a 6 percent drop, while oil and gas shares followed closely, falling 5 percent.