Investors were digesting the latest volley in the U.S.-China trade fight early Wednesday, with a 104% tariff on Chinese electric vehicles and other tech goods taking effect overnight.
The renewed trade tension added fresh anxiety to a day already packed with earnings from Delta Air Lines (DAL) and Constellation Brands (STZ), worrying signals from Walmart (WMT) and Apple (AAPL), and a wave of big-bank results on deck.
Premarket moves among the Magnificent Seven tech stocks were broadly lower Wednesday, with Tesla (TSLA) off 1% and Apple slipping 2% in early trading. Amazon (AMZN), Microsoft (MSFT), and Nvidia (NVDA) were also in the red. The renewed tariff war and surging yields have weighed heavily on growth names, reversing much of the sector’s 2025 momentum.
Bond yields also surged, with the 30-year Treasury topping 4.75% — its highest since mid-February. “If Trump’s secret agenda is to crash the stock market to bring down long-term interest rates, the plan already failed,” economist Peter Schiff wrote on X. “The plan to crash the stock market is now crashing the bond market too.”
Delta kicked off the day with better-than-expected earnings, posting adjusted EPS of $0.46 versus the $0.38 expected by Wall Street. Adjusted revenue came in at $12.98 billion, matching forecasts, while net income jumped to $240 million, up from $37 million a year earlier. Shares rose more than 2% in premarket trading.
But while the headline numbers suggest resilience, Delta also said it plans to reduce flight capacity in the second quarter, signaling caution amid rising costs and shifting travel patterns. The airline cited the need to “restore operational reliability” and more tightly manage fuel and labor expenses.
Constellation, the beverage giant behind Corona, Modelo, Kim Crawford, and Robert Mondavi, will report after the bell, with analysts expecting EPS of $2.27 on $2.12 billion in revenue. Watch for commentary on U.S. beer and wine sales — consumer staples that often shift in tone during periods of economic stress. Results could offer clues about household confidence as inflation lingers and real wages cool.
Early Wednesday, Walmart said it was pulling its Q1 guidance due to uncertainty surrounding newly imposed Trump tariffs on Chinese goods, particularly electric vehicles and consumer electronics. The move underscores how trade policy is clouding visibility for even the most dominant U.S. retailers.
