Stock Market Today: Stocks sink as markets eye US-China trade standoff

Updated at 4:53 PM EDT by Rob Lenihan

Stocks ended lower Tuesday, as global markets clawed back some of the historic losses over the past week and braced for a trade-war showdown between Washington and Beijing. 

The Dow Jones Industrial Average tumbled 320.01 points, or 0.84%, and closed at 37,645.59, while the S&P 500 lost 1.57% to close at 4,982.77 and the tech-heavy Nasdaq lost 2.15% to finish the session 15,267.91.

“The magnitude and scope of US reciprocal tariffs pose significant financial risks to the technology industry and its supply chain, with no sub-sector likely to be spared, as economic uncertainties and retaliatory trade measures drive heightened scrutiny of IT spending plans and the deferral of projects," Moody’s Ratings said in a recent report.

While semiconductors are currently exempt from tariffs, their indirect impact will be significant, as many semiconductor-powered products are subject to tariffs, the firm said, "and the industry remains vulnerable to potential future tariff impositions signaled by the US administration."

The bond rating company said software and IT services face no direct exposure to tariffs, reduced IT spending by enterprises and government will pressure demand.

However, Moody's said that enterprise software revenue is still likely to grow due to strong drivers like digitalization, cloud adoption, cybersecurity, and AI, alongside term-based agreements.

Updated at 1:34 PM EDT

On time 

Stocks are moving lower into the afternoon session, with the S&P 500 now negative on the day and the Nasdaq down 65 points following confirmation from the White House that it plans to impose massive levies on China-made goods, ahead of its sweeping 'reciprocal' tariffs on virtually every U.S. trading partner outside of Russia, on April 9.

Apple shares, seen as one of the most-vulnerable to China tariffs, given that an estimated 90% of its iPhones are made or sourced in the world's second largest economy, were marked 3.2% lower at $175.64 each. 

Apple $AAPL and NVIDIA $NVDA, the two biggest companies in the world, are the two biggest losers in the Dow so far this year with drops of 27%+.

9 of 30 Dow stocks have lost at least a fifth of their value this year. pic.twitter.com/ghO32ZWbDA— Bespoke (@bespokeinvest) April 8, 2025

Updated at 12:53 PM EDT

On time 

The U.S. will put its 104% tariff on China made goods in place at midnight Eastern time, according to comments from White House Press Secretary Karoline Leavitt and reported by CNBC.

The new tariff schedule includes the Trump administration's 20% baseline level, the 34% 'reciprocal' duty announced last week, and an extra 50% tariff put on by President Trump when Beijing retaliated against the U.S. with a 34% levy earlier this week. 

Stocks are paring some of their earlier gains, with the S&P 500 last marked 57 points higher and the Nasdaq up 170 points. 

The fact that the S&P 500 is still green, although down -170 points from its high of day, after the US imposed 104% tariffs on China is incredible, to say the least.

The US imports $439 billion from China PER YEAR.

There's still a lot of "hope" for a deal baked-in to stocks. pic.twitter.com/voVNVLSjYE— The Kobeissi Letter (@KobeissiLetter) April 8, 2025

Updated at 12:13 PM EDT

Gas still guzzling

U.S. gas prices rose for a third straight week, with the national average sitting at $3.21 per gallon following its biggest seven-day jump of the year, according to the consumer advocate Gas Buddy. 

The increases, curiously, paired against a huge move lower in global oil prices, with WTI crude falling below the $60 per barrel mark this week to the lowest level in four years. 

"Motorists can expect gas prices to begin falling nearly coast-to-coast, with oil now at its lowest level since the early days of the pandemic, (and) if tariffs aren’t scaled back soon, the national average could fall below $3 per gallon in the weeks ahead" Gas Buddy said.

U.S. Gas Prices See Biggest Jump of 2025, Won’t Last with Tariff Crash, by @GasBuddyGuy https://t.co/v3Wd6lYhGU— Patrick De Haan (@GasBuddyGuy) April 7, 2025

Updated at 10:31 AM EDT

Healthy gains

CVS Health  (CVS)  shares lead a massive surge for health insurance companies after the government unveiled plans for a big increase in Medicare Advantage payouts next year.

The U.S. Centers for Medicare & Medicaid Services said Medicare Advantage reimbursements will rise by 5.06% in 2026, more than double the 2.2% increase that was proposed by the Biden administration in January. 

 CVS shares were marked 10.3% higher on the session at $70.35 each, with UnitedHealth  (UNH)  rising 7.7% and Humana  (HUM)  up 12.3%.

Stock prices of United $UNH, Humana $HUM, CVS Health $CVS, Elevance $ELV & others soaring today on last night's big Medicare Advantage pay raise for 2026. The raise is due to updated data — would've happened under Trump or Biden. Still a gift for industry. https://t.co/IDfRmOF5eZ— Bob Herman (@bobjherman) April 8, 2025

Updated at 9:40 AM EDT

Bouncing back

The S&P 500 was marked 147 points, or 2.87%, in the opening minutes of trading, with the Nasdaq rising 565 points, or 3.24%.

The Dow surged more than 1,000 points while the Russell 2000 gained 45 points, or 2.48%

Benchmark 10-year note yields, however, were up another 7 basis points from overnight levels at 4.242% while 2-year notes gained 7 basis points to 3.833%

S&P 500 Opening Bell Heatmap (Apr. 08, 2025)$SPY +3.47%