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S&P 500 (NYSEARCA: SPY) Live: A Glimmer of Hope After a Record-Breaking Drop

By Joel South · Updated Apr 8, 4:11pm ET · Published Apr 8, 10:18am ET

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S&P 500 Whimpers Out To Close Trading

Stocks surrendered an early surge and briefly dipped into negative territory as Wall Street endured another day of dramatic swings. The S&P 500, which had climbed nearly 4% earlier, gave up most of its gains by early afternoon, rising just 0.2%. The Dow Jones Industrial Average gained 254 points, while the Nasdaq composite hovered near flat.
What to know:
  • Global markets recover: Stock indexes worldwide rebounded, with Tokyo soaring 6%, Paris jumping 3.4%, and Shanghai edging up 1.6%. Crude oil prices ticked higher after hitting a 2021 low on Monday. European markets posted widespread gains, fueled by optimism that negotiations could still avert the economic fallout from tariffs.
  • US trade rep touts tariff impact: U.S. Trade Representative Jamieson Greer told the Senate Finance Committee that “about 50” countries have initiated talks to avoid Trump’s import tariffs. Aimed at shrinking America’s trade deficits, these taxes could prove “challenging at times,” Greer admitted.
  • China vows retaliation: Beijing pledged to “fight to the end” and deploy countermeasures to protect its interests after Trump proposed an additional 50% tariff on Chinese goods, escalating tensions in the trade war.

Wild Turn of Events

After opening up 4%, the S&P 500 has dropped $2.5 trillion in market value since 10:30 am. Any whisper of trade agreements or escalation sends the market moving hard in either direction.

Market "Fear" Creeps Back

After the CBOE VIX Index dropped over 12% to start of the trading day, the index shot higher in the afternoon trading session, as it now sits over 48.

The broad market gave up all the gains from earlier today, with the S&P 500 dropping from a high of 5,259 points to 5,059.

Afternoon Market Reversal

Wall Street’s rally faded Tuesday as the S&P 500 and Nasdaq turned negative after an early surge.
Hopes of trade deals spurred by Treasury Secretary Bessent’s comments clashed with U.S. Trade Representative Greer’s tariff stance. Tech stocks, including Apple, slid after extra China tariffs began, despite a White House clarification. China vowed retaliation, devaluing the yuan, as global markets showed mixed responses.
S&P 500- (.23%)
Dow Jones-  +.19%
Nasdaq Composite- (.26%)

The CBOE VIX or Volatility Index, a popular gauge for market fear dropped 12% today, now hovering around 40. Still very much in the “fearful” range, a 12% drop in a one day is a positive reprieve from the past 5 market days.

Sector Performance

Live look at sector performance as of 10:30 am:

Communication Services-  +3.23%

Consumer Discretionary- +4.15%

Consumer Staples- +1.55%

Energy- +2.63%

Financials- +4.60%

Health Care- +2.73%

Industrials- +3.36%

Information Technology- +4.97%

Materials- +1.84%

Real Estate- +1.71%

Utilities- +2.30%

 

Live coverage has ended. The full story is below.

Full Coverage

The story so far

The S&P 500 experienced one of the worst stretches in the index’s history driven mainly by President Trump’s escalation of tariffs on China. The market has fallen 17.5% since its high in mid-February but the two day drop starting last Friday through the market close yesterday was the 5th worst stretch in the past 80 years.

Tuesday brings some signs of recovery. The S&P 500 rose 3.09% to 5218.73 shortly after the open, joined by a 3.41% gain in the Nasdaq and 3.02% in the Dow. Treasury Secretary Scott Bessent’s comments about potential “good deals” with Japan and other nations fueled optimism, lifting Japan’s Nikkei 225 by 6%. China, however, remains defiant, pledging to “fight to the end” while weakening the yuan, hinting at a prolonged trade conflict despite President Trump saying  “China wants to make a deal, badly” in a Truth Social post.

Stocks on the move

Health insurance stocks are S&P 500’s biggest winners today following a significant boost to Medicare reimbursement rates. Humana (NYSE: HUM | HUM Price Prediction) and UnitedHealth (NYSE:UNH) are up 12.78% and 7.45% respectively, after the Center for Medicare & Medicaid Services finalized a 5.06% average increase in 2026 Medicare Advantage payments, more than double the expected increase.
Eli Lilly (NYSE: LLY) shares are gaining 5.06% today following a significant upgrade from Goldman Sachs. The firm raised its rating on the pharmaceutical giant to Buy from Neutral, setting a price target of $888. Analyst notes highlight a “compelling entry point” into what they call the “sector’s premier topline grower” after a recent sell-off.  With its strong portfolio, including drugs like Mounjaro and Zepbound, the company is poised to maintain its “pole position” in this rapidly expanding space, driving investor optimism.
Johnson & Johnson (NYSE: JNJ) is up 1.5%, also after Goldman Sachs’ Buy rating and a $172 price target. The firm argues that market concerns over the looming Stelara loss of exclusivity are overstated. In a research note, the analyst points out that consensus estimates fail to fully capture the strength of J&J’s Innovative Medicine business. As the company moves past the Stelara patent cliff, it’s entering a phase of robust new product cycles across multiple high-potential markets. This optimistic outlook underscores J&J’s resilience and growth potential, boosting confidence among investors.

Contact [email protected] for any questions or corrections.

Joel South

Joel South covers large-cap stocks, dividend investing, and major market trends, with a focus on earnings analysis, valuation, and turning complex data into actionable insights for investors.

He brings more than 15 years of experience as an investor and financial journalist, including 12 years at The Motley Fool, where he served as an investment analyst, Bureau Chief, and later led the Fool.com investing news desk. He has also co-hosted an investing podcast and appeared across TV and radio discussing market trends.

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