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Dow Jones Today: DIA ETF Down 2%, Amazon (Nasdaq: AMZN) and American Express (NYSE: AXP) Drop
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Key Points
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Trump’s tariff pause (except China’s 125%) boosts Dow 8%, Nasdaq 12%, but markets slip today as EU delays counter-tariffs.
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Amazon drops 3.5%, AmEx 4.5%, hit by China tariff uncertainty and spending fears.
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U.S. Markets Melting Down and Europe Sees Gains
European stocks, led by a 3.7% Stoxx 600 gain, notched their best session in three years on Thursday, fueled by Trump’s last-minute tariff cut to 10% for 90 days, lifting the euro to its highest level versus the dollar since September. U.S. markets, however, flipped to losses, with the SPY down about 5.6% by 1:31 PM today, retreating from Wednesday’s 9% jump.
Stock Market Fear Gains, Stocks Drop
The 90-day tariff truce isn’t calming the storm—trade battles persist, and stocks are cratering again. Still active: 145% China duties, 25% on aluminum, autos, and non-USMCA Canada/Mexico goods, and a 10% blanket tariff. Afternoon trading shows S&P 500 down 4.18%, Dow 2.27%, Nasdaq 4.75%.
The CBOE VIX index gained 30% now sitting in extreme fear territory of 44 points.
Trade Deals on the Table, Market Sours
Markets are buckling as China slaps 84% tariffs on U.S. goods, hitting back at Trump’s 125% tax on Chinese imports. The S&P 500 falls 2.64%, the Nasdaq Composite drops 3.72%, and the Dow slips 2.11% as of 10:40 a.m.
Economic Policy Advisor Kevin Hassett highlighted deal offers from 15 countries this morning, suggesting a break from trade chaos, but investors remain unmoved, eyes locked on the worsening U.S.-China clash.
Good Inflation Numbers Just Came In
Inflation eased to 2.4% in March’s CPI report, beating the 2.5% prediction, while Core CPI hit 2.8%, below the anticipated 3%. Though Core CPI has fallen for two straight months, tariffs and inventory demands could lift it higher ahead.
It’s been a wild few days on the market.
After seeing trillions of dollars wiped off of the market, President Trump offered some reprieve, sending the Dow up 8% or by 2,962 points. The tech-heavy NASDAQ closed up 12%, or by 1,857 points, as the S&P 500 tacked on nearly 10% or 474 points.
Except for China, tariffs have been dropped to 10% for the next 90 days for hopeful negotiations. All of which allowed wary investors to breathe again.
Quite a day.
Then, just this morning, the European Union announced a similar 90-day reprieve – just days before launching tariffs against the U.S.
“We took note of the announcement by President Trump. We want to give negotiations a chance,” European Commission President Ursula von der Leyen said, as quoted by CNBC. “If negotiations are not satisfactory, our countermeasures will kick in. Preparatory work on further countermeasures continues. As I have said before, all options remain on the table.”
Of course, it’s all welcomed news.
But there’s still a good deal of uncertainty with the standing 125% tariff on China.
“The increase in China tariffs but delay in others leaves the effective tariff rate at 23%, at historical highs,” Michael Gapen, Morgan Stanley chief U.S. economist said, as quoted by CNBC. “Delays help, but do not reduce uncertainty.”
It’s Why the Broader Markets are Slipping Again
At the open, the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) is down about 2% on the day. It’s also why stocks like Amazon (NASDAQ:AMZN) and American Express (NYSE:AXP) are down.
Amazon
At the open, shares of Amazon are down about $6.60, or 3.5%. Not only is the stock being dragged lower with the broader market, but it’s also taking a hit over sky-high Chinese tariffs.
According to The Globe and Mail, “According to a report from Reuters, Chinese companies selling products on Amazon are planning to either raise their prices to American consumers or even quit the U.S. market altogether. It was reported that some sellers had already hiked prices by up to 30% and lowered spending on Amazon advertising fees. Other markets they are looking to switch their products to include Canada, Mexico and Europe.”
That’s not great news considering that China is home to about half of all Amazon sellers.
American Express
Shares of American Express are down about $12, or 4.5% on the day.
While analysts at Bruyette & Woods reiterated an Outperform rating with a $360.00 price target on the stock, it’s not enough to stop the pullback. Unfortunately, the tariff fears did ignite consumer spending concerns, higher inflation fears, and worries about a potential recession on the horizon. All of which could negatively impact discretionary spending.
However, American Express is still a solid long-term dividend-paying opportunity that’s well off its highs, with insider buying to boot. Director Michael J. Angelakis paid $1 million on March 7 for 3,700 American Express shares at an average price of $269.89 each.
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