US stocks dive after another stunning reversal as uncertainty reigns about Trump's tariffs

NEW YORK (AP) — U.S. stocks dove Tuesday following another stunning reversal, with Wall Street veering from a huge gain at the opening of trading to more losses at the close, because investors still have no idea what to make of President Donald Trump’s trade war, which is scheduled to kick into a higher gear after midnight.

After blasting to an early gain of 4.1%, which would have marked its best day in years, the S&P 500 quickly lost all of it. It then careened to a loss of 3% before paring its drop to 1.6%. That left the index, which sits at the heart of many investors’ 401(k) accounts, nearly 19% below its record set in February.

The Dow Jones Industrial Average lost 320 points, or 0.8%, after erasing an earlier surge of 1,460 points, while the Nasdaq composite dropped 2.1%.

The shocking swings followed rallies for stocks globally earlier in the day, with indexes up 6% in Tokyo, 2.5% in Paris and 1.6% in Shanghai. But even after those jumps, analysts had been warning to expect more swings up and down for financial markets not just in the days ahead but also the hours.

The big question remains centered on how long Trump will keep his stiff tariffs on other countries, which would raise prices for U.S. shoppers and slow the economy. If they last a long time, economists and investors expect them to cause a recession. But if Trump lowers them through negotiations relatively quickly, the worst-case scenario can be avoided.

Hope still remains on Wall Street that negotiations may be possible, which helped drive the morning’s rally. Trump said Tuesday that a conversation with South Korea’s acting president helped them reach the “confines and probability of a great DEAL for both countries.”

“Their top TEAM is on a plane heading to the U.S., and things are looking good,” Trump said on his Truth Social platform. “We are likewise dealing with many other countries, all of whom want to make a deal with the United States.”

Japanese stocks led global markets higher after the country’s prime minister, Shigeru Ishiba, appointed his trade negotiator for talks with the United States. It was based on an agreement between Ishiba and Trump, Japanese officials said.

But investors should still remain cautious, said Sameer Samana, a senior global market strategist for Wells Fargo Investment Institute. He pointed to how “the key countries continue to escalate, rather than de-escalate.”

China said it will “fight to the end” and warned of countermeasures after Trump threatened on Monday to raise his tariffs even further on the world’s second-largest economy.

White House press secretary Karoline Leavitt then said Tuesday that Trump’s threats of even higher tariffs on China will become reality after midnight, when imports from China will be taxed at a stunning 104% rate.

That would coincide with Trump’s latest set of broad tariffs, which are scheduled to kick in at 12:01 a.m. And Trump has made clear that he does not intend to have any exemptions or exclusions in the tariffs, according to the country’s top trade negotiator, Jamieson Greer.

The U.S. trade representative also said in testimony before a Senate committee that roughly 50 countries have already been in contact, and he’s told them: “If you have a better idea to achieve reciprocity and to get our trade deficit down, we want to talk with you, we want to negotiate with you.”

Trump’s trade war is an attack on the globalization that’s shaped the world’s economy and helped bring down prices for products on store shelves but also caused manufacturing jobs to leave for other countries. Trump has said he wants to narrow trade deficits, which measure how much more the United States imports from other countries than it sends to them as exports.

On Wall Street, companies with vast supply chains around the world helped lead the losses. Ralph Lauren sank 5.6%, for example. It sourced about 15% of its products from China last fiscal year.

Best Buy doesn’t import many products directly from China, but the electronics industry in general has a supply chain that heavily depends on the country. Best Buy estimates vendor imports from China make up about 55% of the products it purchases, and the retailer’s stock fell 8.3%

On the winning side of Wall Street were health insurers, which rose after the Centers for Medicare & Medicaid Services announced a stronger-than-expected increase in Medicare Advantage payments for next year. Humana jumped 10.7%, and United Health climbed 5.4%.

All told, the S&P 500 lost 79.48 points to 4,982.77. The Dow Jones Industrial Average dropped 320.01 to 37,645.59, and the Nasdaq composite sank 335.35 to 15,267.91.

In the bond market, longer-term Treasury yields rose for a second straight day to recover more of their sharp losses from prior months. The yield on the 10-year Treasury climbed to 4.27% from 4.15% late Monday and from just 4.01% late Friday.

Traders work on the floor at the New York Stock Exchange in New York, Tuesday, April 8, 2025. (AP Photo/Seth Wenig)

Traders work on the floor at the New York Stock Exchange in New York, Tuesday, April 8, 2025. (AP Photo/Seth Wenig)

Mike Pistillo Jr. works on the floor at the New York Stock Exchange in New York, Tuesday, April 8, 2025. (AP Photo/Seth Wenig)

Federico DeMarco works on the floor at the New York Stock Exchange in New York, Tuesday, April 8, 2025. (AP Photo/Seth Wenig)

Joseph Maguire works on the floor at the New York Stock Exchange in New York, Tuesday, April 8, 2025. (AP Photo/Seth Wenig)

Thomas Schreck works on the floor at the New York Stock Exchange in New York, Tuesday, April 8, 2025. (AP Photo/Seth Wenig)

People leave the New York Stock Exchange after the closing bell in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

People leave the New York Stock Exchange after the closing bell in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

People walk past the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

The screens show the Korea Composite Stock Price Index (KOSPI), right, near the screen showing President Donald Trump during a news reporting at a foreign exchange dealing room in Seoul, South Korea, Tuesday, April 8, 2025. (AP Photo/Lee Jin-man)

A currency trader watches computer monitors near by the screens showing the foreign exchange rates at a foreign exchange dealing room in Seoul, South Korea, Tuesday, April 8, 2025. (AP Photo/Lee Jin-man)

A currency trader watches computer monitors near the screens showing the Korea Composite Stock Price Index (KOSPI), left, the foreign exchange rate between U.S. dollar and South Korean won, center, and the Korean Securities Dealers Automated Quotations (KOSDAQ) at a foreign exchange dealing room in Seoul, South Korea, Tuesday, April 8, 2025. (AP Photo/Lee Jin-man)

Monitors, back, show Japan's Nikkei 225 index at a securities firm as a member of the Tokyo Metropolitan Police directs traffic and pedestrians for intersection safety in the morning in Tokyo, Tuesday, April 8, 2025. (AP Photo/Hiro Komae)

Men walk past monitors showing Japan's Nikkei 225 index at a securities firm in Tokyo, Tuesday, April 8, 2025. (AP Photo/Hiro Komae)

A man rides a bicycle past monitors showing Japan's Nikkei 225 index at a securities firm in Tokyo, Tuesday, April 8, 2025. (AP Photo/Hiro Komae)

Women ride bicycles past monitors showing Japan's Nikkei 225 index at a securities firm in Tokyo, Tuesday, April 8, 2025. (AP Photo/Hiro Komae)

People pass by a screen showing the Korea Composite Stock Price Index (KOSPI) at the Korea Exchange in Seoul, South Korea, Tuesday, April 8, 2025. (AP Photo/Ahn Young-joon)

People pass by a screen showing the Korea Composite Stock Price Index (KOSPI) at the Korea Exchange in Seoul, South Korea, Tuesday, April 8, 2025. (AP Photo/Ahn Young-joon)

People pass by a screen showing the Korea Composite Stock Price Index (KOSPI) at the Korea Exchange in Seoul, South Korea, Tuesday, April 8, 2025. (AP Photo/Ahn Young-joon)

A man walk past monitors showing Japan's Nikkei 225 index at a securities firm in Tokyo, Tuesday, April 8, 2025. (AP Photo/Hiro Komae)

A man walks by monitors showing Japan's Nikkei 225 index at a securities firm in Tokyo, Tuesday, April 8, 2025. (AP Photo/Hiro Komae)

Traders work on the floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

President Donald Trump is seen on the television as traders work on the floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

Traders work on the floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

President Donald Trump is seen on the television as traders work on the floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

Bobby Charmak, left, and others work on the floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

Federico DeMarco works on the floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

Traders work on the options floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

Traders work on the floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

Chris Lagana works on the floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

Traders work on the floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

An electronic display shows financial information on the floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

CHARLOTTE, N.C.--(BUSINESS WIRE)--Apr 10, 2025--

For the third consecutive year, Krispy Kreme® is offering Americans a sweet tax break on dozens of delicious doughnuts for Tax Day.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250410925472/en/

On Tuesday, April 15, guests who purchase any dozen doughnuts at regular price in shop can receive a second Original Glazed® dozen for only the sales tax in their state. And anyone who orders a dozen online at regular price for pickup or delivery can use the promo code TAXBREAK to receive a second Original Glazed dozen for free.

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About Krispy Kreme

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On Tuesday, April 15, guests who buy an Original Glazed® or assorted dozen in-shop will pay only the sales tax for an additional Original Glazed dozen. Customers who order a dozen online can get a second Original Glazed dozen for free.