Stock Market Update Wednesday April 2, 2025

Stock Market Update Wednesday April 2, 2025 Stocks extended their intraday rally for a third consecutive session, with the S&P 500 advancing 0.7%, nearly erasing losses from Friday’s sharp selloff. The Nasdaq-100 (QQQ) gained 0.8%, while small caps outperformed, lifting the Russell 2000 (IWM) by 1.4%. However, downside risks loom as S&P futures are trading sharply lower after the closing bell, following Trump’s announcement of aggressive tariff measures, which could weigh on sentiment heading into tomorrow’s session.

Away From Stocks: In fixed income, Treasury yields edged higher in a bear-flattening move, reflecting modest selling pressure in short-duration bonds. WTI crude climbed toward $72 per barrel, marking its highest level since mid-February, while gold inched up to $3,124 per ounce, supported by haven demand. Bitcoin surged to nearly $87,000, extending its bullish momentum, while market volatility eased, with the VIX retreating to the 21-handle.

The key question investors should consider is: How does President Trump want the stock market to react to these tariff negotiations? Tomorrow's close and volume will be very important for the SPY ETF.

Reasons Trump Would Want the Market to Rally After Tariff Announcements: