Stocks Slip As Tariff Fears Resurface: What's Driving Markets Wednesday?

U.S. stocks declined on Wednesday, with all major indices in the red by midday in New York, as renewed concerns over tariffs rattled investors.

President Donald Trump signaled that new trade duties on automobiles could be announced as early as today, while market participants are also bracing for April 2, which marks the start of reciprocal tariffs.

Technology shares, particularly semiconductor stocks, led the selloff, dragging the Nasdaq 100 sharply lower and trimming much of its weekly gains. Shares of Nvidia Corp. NVDA tumbled 5.9%, on track for the worst daily loss since early March, as investors fear further restrictions on chip exports to China. The iShares Semiconductor ETF SOXX fell 3.4%.

Meanwhile, blue-chip stocks in the Dow Jones Industrial Average were more resilient, supported by strength in the energy and consumer staples sectors. The CBOE Volatility Index (VIX), Wall Street’s so-called “fear gauge,” jumped 8% to 18.9.

The dollar and Treasury yields remained flat, reflecting a wait-and-see stance in the bond market amid uncertainty over the broader economic impact of potential tariffs.

In commodities, crude oil rose 1.4%, extending weekly gains to 2.5%—on track for its best week since early January—after a surprise drop in commercial inventories. Metals held steady, with copper holding record highs.

Bitcoin slipped 1% to $86,500 following a flat close the previous day.

According to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust SPY fell 1% to $569.92.
• The SPDR Dow Jones Industrial Average DIA inched 0.2% lower to $424.78.
• The tech-heavy Invesco QQQ Trust Series QQQ dropped 1.7% to $485.01.
• The iShares Russell 2000 ETF IWM also fell 1% to $205.59
• The Consumer Staples Select Sector SPDR Fund XLP outperformed, up 1.3%; the Technology Select Sector SPDR Fund XLK was the worst sector performer, down 2.1%.

Wednesday’s Stock Movers

• GameStop Corp. GME skyrocketed 15% in reaction to stronger-than-expected quarterly earnings. The retailer eyes its strongest one-day gain since June 2024.
• Other stocks reacting to earnings reports were Cintas Corp. CTAS, up 6.5%, Paychex Inc. PAYX, up 4.8%, Dollar Tree Inc. DLTR, up 4.9%, and Chewy Inc. CHWY, up 1.5%.

Read Next:

Photo: Shutterstock