New York, Apr 3 (UNI) U.S. stocks ended higher on Wednesday, as investors were waiting for U.S. President Donald Trump's tariff announcement.
The Dow Jones Industrial Average rose 235.36 points, or 0.56 percent, to 42,225.32. The S&P 500 added 37.90 points, or 0.67 percent, to 5,670.97. The Nasdaq Composite Index increased by 151.15 points, or 0.87 percent, to 17,601.05.
Nine of the 11 primary S&P 500 sectors ended in green, with consumer discretionary and industrials leading the gainers by going up 2.02 percent and 0.93 percent, respectively. Meanwhile, consumer staples and communication services dropped 0.18 percent and 0.14 percent, respectively.
The White House confirmed that the new reciprocal tariffs, applying to all countries, will take effect immediately following a 4 p.m. EDT announcement in the Rose Garden. However, details remained scarce, fueling uncertainty about which industries would be hit the hardest and how the economy would respond.
According to Bloomberg News, the administration was considering multiple tariff levels. U.S. Treasury Secretary Scott Bessent reassured lawmakers that the announced tariffs would serve as a "cap," meaning affected countries might have an opportunity to negotiate reductions.
Meanwhile, Tesla shares surged 5.33 percent after reports emerged that Trump signaled to his cabinet that Elon Musk would step back from his advisory role in the coming months.
"The market has moved higher since the headline came across that Elon Musk will be leaving the Department of Government Efficiency soon, and that's reflected not only in the S&P 500 and Nasdaq but Tesla's stock moving higher," said Art Hogan, the Boston-based chief market strategist for B. Riley Wealth.
Hogan also pointed out that market participants have "spent the last six weeks pricing in worst-case scenarios for tariffs. Anything less than a worse-case scenario being announced would be received as a positive in a very oversold market."
The bond markets reflected growing economic concerns. The yield on the 10-year Treasury note edged down to 4.15 percent as of 4:30 p.m. EDT, after closing at 4.16 percent on Tuesday.
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