FX.co ★ US Stocks Extend Choppy Trading

On Wednesday, US stocks experienced a rise, providing a brief respite from the recent aggressive selloff, despite ongoing concerns about escalating tariffs by the US and increased retaliatory measures from key trading partners, which fuel fears of a looming recession. The S&P 500 surpassed the 5,000 mark, and the Dow Jones Industrial Average increased by 100 points, with the technology sector driving a 1.5% gain for the Nasdaq 100. In response to the US increasing tariffs to a cumulative 104%, China elevated its tariffs against the US to 84% and expanded its no-export list. Concurrently, the European Union confirmed the imposition of tariffs on 21 billion euros worth of goods. These developments intensified warnings of a potential recession and skepticism about President Trump's willingness to engage in bilateral negotiations with international partners. Stock pressures were further compounded by the bond market selloff and concerns that investors might be compelled to liquidate equities in a hurried search for liquidity. The technology sector saw notable gains, with Nvidia rising by 3%. Conversely, pharmaceutical stocks suffered after President Trump threatened higher tariffs on pharmaceuticals and chemicals, leading to a 3% decline for Merck and AbbVie.