US stocks tumble again as reality sets back in on Wall Street [CNN]
The Dow, after rising nearly 3,000 points Wednesday, fell more than 1,300 points, or 3.3%, Thursday morning. The S&P 500 fell 4% and the Nasdaq Composite slid 4.6%…. Traders were elated that Trump temporarily rescinded his so-called reciprocal tariffs, which aren’t really reciprocal, for 90 days….
But even after Trump’s about-face, the reality remains stark: Economists said the economic damage is done, and many say there is still an elevated risk of a US and global recession. Stocks are still well below where they were before Trump unveiled his “Liberation Day” tariffs last week, and those large stock market losses, existing tariffs and high degree of uncertainty about American trade policy are enough to sink the economy, they say.
From ‘Be Cool!’ to ‘Getting Yippy’: Inside Trump’s Reversal on Tariffs [NYT]
The economic turmoil, particularly a rapid rise in government bond yields, caused Mr. Trump to blink on Wednesday afternoon and pause his “reciprocal” tariffs for most countries for the next 90 days, according to four people with direct knowledge of the president’s decision…. Behind the scenes, senior members of Mr. Trump’s team had feared a financial panic that could spiral out of control and potentially devastate the economy. Treasury Secretary Scott Bessent and others on the president’s team, including Vice President JD Vance, had been pushing for a more structured approach to the trade conflict….
Why the Trade War Isn’t Over for America’s Biggest Banks [WSJ]
Retaliatory tariffs remain in place against China, the U.S.’s third-largest trading partner. Those could still cause economic dislocation and possibly inflation, which might keep the Federal Reserve in check for some time…. New hazards are resurfacing almost daily. Two years ago, the banking industry’s biggest problem was interest-rate risk. That seemed to have subsided. But it is surging again, as Treasury yields have jumped sharply, for reasons that still aren’t entirely clear.
IPOs Put On Ice By Tariff Uncertainty, EY Warns [WSJ]
“Based on client conversations, those close to filing or launching roadshows are taking a ‘wait-and-see’ approach, while earlier-stage companies continue preparing to keep their options open for better market conditions,” [IPO advisory leader Mark Schwartz] told Dow Jones…. “A true recovery will also depend on successful follow-ons and standout IPOs that price and trade well, restoring investor confidence,” he added.
Trump says he does not want to see U.S. Steel go to Japan [Reuters via CNBC]
The comment appeared to contradict recent actions by the Trump administration. On Monday, Trump directed a national security panel to take a fresh look at Nippon Steel’s $14 billion bid for U.S. Steel to help determine if “further action” is appropriate, raising hopes the deal could gain an elusive green light.
Trump SEC Chair pick Paul Atkins confirmed by Senate [The Hill]
Under Atkins, the SEC is expected to reduce corporate disclosures, cut back on regulation and be more crypto-friendly, particularly compared to previous chair Gary Gensler, who had a more hardline approach to the industry.
