Wall Street Rebounds as Investors Navigate Tariff Uncertainty and Mixed Economic Data
Investor sentiment got a boost after Commerce Secretary Howard Lutnick indicated late Tuesday that progress was being made toward a tariff agreement with Canada and Mexico.
Wall Street’s main indices gained amid a choppy session on Wednesday even as investors grappled with uncertainty surrounding President Donald Trump’s contentious tariffs.
The S&P 500 and Nasdaq traded over 0.4 percent higher, while the Dow Jones Industrial Average rebounded 250 points, or 0.6 percent, after shedding more than 1,300 points over the past two days. All three benchmarks swung between gains and losses, with a negative close marking a third straight losing session.
Investor sentiment got a boost after Commerce Secretary Howard Lutnick indicated late Tuesday that progress was being made toward a tariff agreement with Canada and Mexico. On Wednesday, he added that the administration was considering targeted relief for specific industries, fueling a rally in automakers. General Motors jumped over 3 percent, while Ford gained more than 2 percent.
Markets have been on edge as escalating trade tensions—with China, Mexico, and Canada announced retaliatory measures—pushed the major indexes down more than 2 percent for the week. Trump, however, played down the market turbulence, telling Congress on Tuesday night that some “disturbance” from his trade policies was acceptable.
The S&P 500 erased its post-election gains from November, while the Nasdaq Composite flirted with correction territory at times during the session.
Economic data painted a mixed picture. A stronger-than-expected services sector report offered brief support to stocks, but a weaker-than-anticipated ADP private payroll report added to concerns about a slowing economy.
Meanwhile, Novo Nordisk surged over 3 percent after unveiling a direct-to-consumer online pharmacy for its weight-loss drug Wegovy, slashing prices by more than half. The move mirrors a similar strategy by Eli Lilly and aims to attract uninsured patients while fending off competition from cheaper compounded versions.
European markets rebounded on Wednesday, buoyed by optimism that U.S. President Donald Trump might ease the 25 percent tariffs on Canada and Mexico, alongside expectations of German fiscal reforms that could boost defense and infrastructure spending.
The Stoxx 600 index climbed 1 percent, recovering from the previous session’s global market downturn driven by trade tensions. The Stoxx autos index, which had plunged nearly 6 percent a day earlier, regained 2.4 percent. However, utilities and food & beverage stocks remained under pressure.
Germany led the regional gains, with the DAX index surging 3.5 percent. Among the top performers were construction giant Hochtief, which jumped 15.5 percent, equipment manufacturer Kion Group, up 20 percent, Deutsche Bank, rallying 12.4 percent, and Siemens Energy, which rose 8.6 percent. Defense stocks also extended their recent rally, with the Stoxx Aerospace and Defense index advancing 2.7 percent.
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