Stocks experienced a sharp decline in after-hours trading Wednesday after rising earlier in the day ahead of a highly anticipated announcement on new tariffs. During the regular trading session, the Dow Jones Industrial Average gained 0.6%, the S&P 500 rose 0.7%, and the Nasdaq Composite added 0.9%. However, investor sentiment turned negative after the close of trading, following the announcement that the U.S. would impose new tariffs on a wide range of countries.
President Trump revealed that a minimum 10% tariff would be applied to imports from nearly all nations, with country-specific tariffs set for 60 countries, reflecting the administration’s assessment of unfair trade practices. Tariffs will vary, with a 20% rate on imports from the European Union, 26% on imports from Japan, and 34% on imports from China.
Following the announcement, stocks dropped significantly in after-hours trading. The SPDR S&P 500 ETF (SPY) fell 3.5%, while the Invesco QQQ ETF (QQQ), which tracks the Nasdaq 100, slid 4.4%. Futures tied to the Dow Jones Industrial Average suggested a decline of over 1,000 points at one point.
In the tech sector, major stocks such as Tesla (TSLA) and Palantir (PLTR) each saw declines of around 8%, while Apple (AAPL), Amazon (AMZN), and Nvidia (NVDA) all dropped by about 6%. Outside the tech industry, stocks of companies like Nike (NKE) and Walmart (WMT) retreated 7%, and Deckers Outdoor (DECK) fell 12%.
Bitcoin, a key digital asset, also experienced a drop following the announcement, as its price fell to $83,000, down from about $88,000. Shares of Strategy (MSTR), a major holder of Bitcoin, dropped 6% in extended trading.
During regular trading, Tesla gained more than 5% after news broke that CEO Elon Musk might step down from certain advisory roles. However, Tesla’s stock had earlier fallen after reports that its first-quarter delivery numbers missed analysts’ expectations.
In the broader tech sector, stocks had mixed results. Amazon saw a 2% rise, driven by reports that the company had made a bid for social media platform TikTok. Other tech stocks such as Apple, Nvidia, and Broadcom (AVGO) saw gains, while Microsoft (MSFT), Alphabet (GOOG), and Meta Platforms (META) experienced small declines.
Notably, Newsmax (NMAX) was a major decliner, with shares falling 77% after a sharp rise following its IPO on Monday. The stock lost an additional 9% in after-hours trading.
In bond markets, the yield on the 10-year Treasury fell to 4.13%, down from 4.16% at the close on Tuesday. The yield fluctuated between 4.11% and 4.24% during the day, indicating ongoing economic uncertainty.
Gold futures rose 0.2% to $3,170 per ounce, near a record high, while West Texas Intermediate crude oil futures dropped 2.8% to $69.70 per barrel.
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