OPENING CALL

Trump's reciprocal tariffs on nearly 100 nations took effect overnight, including a 104% tariff on Chinese imports, and while futures looked mixed after China called for dialogue , all eyes are on the selloff in Treasuries .

The big question for markets is why the price of long-term Treasury debt has been falling, driving yields higher.

"US Treasury markets are also experiencing an incredibly aggressive selloff... adding to the evidence that they're losing their traditional haven status," Deutsche Bank said on Wednesday.

Stocks to Watch

Aehr Test Systems narrowed its loss and logged higher revenue, boosted by market share gains in new end markets. Shares rose 7.7% off market.

Apple rose 2.1% after the White House Press Secretary told reporters that Trump wants iPhones to be manufactured in the U.S.

Cal-Maine's revenue doubled and profit rose. Shares fell 4.8%.

Nvidia was up 3.6%. Cathie Wood's flagship ARK Innovation exchange-traded fund which bought a total of 343,657 shares of Nvidia on Monday and Tuesday.

Peabody Energy's stock rallied after executive orders aimed at expanding the production and use of coal in the U.S.

Strategy rose nearly 5% as its bitcoin holding increases in value with the cryptocurrency climbing back above $77,500.

Tesla rose 3.5%. CEO Elon Musk, not a fan of tariffs, ripped into Peter Navarro, the architect of Trump's trade policy on Tuesday.

Watch For:

EIA Weekly Petroleum Status Report; Economic Club of Washington, DC event with Fed's Barkin; Earnings from Delta Air Lines, Constellation Brands, Simply Good Foods, PriceSmart, and Neogen.

Today's Headlines/Must Reads:

-Big Bank CEOs Reckon With Their Lack of Influence on Trump

-Trump's Tariffs Put Fed Chair Powell in a 'No-Win Situation'

-How Elon Musk Rescued X From the Brink

MARKET WRAPS

Forex:

The fall in Treasuries and equities was a toxic combination for the dollar, ING said.

Markets were clearly punishing U.S. assets after tariffs kicked in, it said.

If European equities outperform U.S. equities again Wednesday and the spread between 10-year Treasury yields and the German equivalent widens further, it will signal the additional loss of confidence in dollar-denominated assets, it added.

"We think the balance of risks is tilted to the downside today in the DXY dollar index, which can break below 102.0."

The euro was stronger as it benefited from its liquidity.

The currency is the second-most liquid in the world and is a preferred alternative to the dollar for foreign exchange reserves, putting it in a good position to benefit from any dollar confidence crisis, ING said separately.

Sterling fell to its lowest level against the euro in nearly one year.

Bonds:

Demand for Treasurys as a safe haven asset was fading, Hargreaves Lansdown said.

The coming 10-year Treasury auction will be an important gauge of demand for duration, Danske Bank said.

Energy:

Oil prices plunged to a four-year low.

Sentiment across markets continued to deteriorate as traders feared that reciprocal tariffs on U.S. trade partners--including a 104% levy on Chinese imports--will stoke inflation and slow economic growth.

"The prospects of weaker oil demand has spooked traders," ANZ said.

"Any dent to demand will be exacerbated by OPEC's decision to increase its production hikes."

Metals:

Gold futures rose, regaining momentum on renewed safe-haven demand.

If trade tensions persist and inflation concerns return to the forefront of market worries, gold could be poised for another record-breaking rally, Sucden Financial said.

Julius Baer also said gold could benefit from renewed safe-haven demand, and remained constructive on the metal.

Commodity Prices

The continuing selloff in mining stocks suggested investors expect more falls in commodity prices ahead, according to Citi.

Goldman Sachs cut its copper-price estimate for the third quarter to a monthly average of $8,370 from prior expectations of $9,883 a ton.

TODAY'S TOP HEADLINES

7-Eleven Owner Posts Higher Quarterly Net Profit on Asset-Sales Gains

Seven & i Holdings reported a rise in quarterly net profit as gains from asset sales helped offset weaker earnings from convenience-store operations at home and abroad, underscoring the challenges the 7-Eleven parent faces as it tries to stave off a takeover attempt by the Canadian owner of Circle K.

The Japanese owner of 7-Eleven said Wednesday that net profit more than doubled from a year earlier to 109.44 billion yen, equivalent to $748.1 million, for the three months ended Feb. 28. That beat the estimate of Yen98.5 billion in a poll of analysts by data provider Visible Alpha.

Comcast NBCUniversal to Open Theme Park in Bedford, U.K.

Comcast NBCUniversal plans to build a theme park in Bedford, U.K., its first ever resort complex in Europe.

The media and entertainment company said the park will be designed by its Universal Destinations & Experiences segment. It will have several themed lands with rides, attractions and entertainment. The resort will also have a 500-room hotel and a retail, dining and entertainment complex.

Vanguard Cuts Forecast for U.S. Economy. Tariffs Have Us 'Dancing With Recession.'

Vanguard is cutting its forecast for U.S. economic growth and raising its expectations for inflation to account for the potential impact of President Donald Trump's tariffs.

Joe Davis, Vanguard's global chief economist and the global head of Vanguard's investment strategy group, now anticipates 2025 U.S. GDP growth will fall below 1%, roughly a percentage point below Vanguard's previous forecast.

Japan Currency Official Vows to Stabilize Markets Amid Tariff Turmoil

TOKYO-Japan's top currency diplomat has pledged to ensure stability in the global financial system as tariff fears spook investors, saying Tokyo will coordinate with other nations on how they are handling U.S. trade policy changes.

"It won't be effective unless countries work together because the [global] economy is connected," Atsushi Mimura, vice finance minister for international affairs, told reporters Wednesday.

China Denies Military Involvement in Ukraine After Citizens Captured

China denied any military involvement in Ukraine, after Kyiv said it had captured two Chinese men in the country's east.

Chinese Foreign Ministry spokesman Lin Jian on Wednesday said China was still trying to confirm with Ukraine details of the capture of the two Chinese citizens who Ukrainian authorities said were fighting for the Russian military.

Companies Stung by Tariffs Explore Lawsuit Against Trump

Businesses are contemplating a risky strategy to fight tariffs: suing President Trump.

Amid the scramble to beat back the tariffs, the Chamber of Commerce and other top industry groups are discussing whether to file a lawsuit, according to multiple people familiar with the conversations.

Acting IRS Chief to Depart, Extending Turmoil at Agency

WASHINGTON-Acting IRS Commissioner Melanie Krause plans to leave the agency soon, said people familiar with her decision, extending an extraordinary period of turmoil at the Internal Revenue Service as the Trump administration shrinks and reshapes the agency.

The development comes a week before the individual income tax-filing deadline, in the IRS's busiest time of year. The move happened right after an unusual data-sharing agreement between the IRS and immigration authorities became official, a step that required weeks of negotiations as agency attorneys tried to structure the deal to avoid violating taxpayer-privacy laws.

Judge Orders White House to Restore AP's Access

A federal judge on Tuesday ordered the White House to restore the Associated Press's access to presidential events, saying that the decision to impose limitations violated the news organization's free speech rights.

U.S. District Judge Trevor McFadden ruled that it was unconstitutional for the Trump administration to punish the AP because it refused to change its style guidance for the Gulf of Mexico, which President Trump renamed the Gulf of America.

Write to clare.kinloch@wsj.com

TODAY IN CANADA

Earnings:

Cogeco Communications 2Q

North West Co 4Q

Economic Indicators $(ET)$:

Nothing major scheduled

Stocks to Watch:

Aris Mining 2025 Production Guidance Is Between 230,000 to 275,000 Oz

Zefiro Methane Appoints Correne Loeffler to Its Bd of Directors

Expected Major Events for Wednesday

05:00/JPN: Mar Consumer Confidence Survey

06:00/JPN: Mar Preliminary Machine Tool Orders

11:00/US: 04/04 MBA Weekly Mortgage Applications Survey

14:00/US: Feb Metropolitan Area Employment and Unemployment

14:00/US: Feb Monthly Wholesale Trade

14:00/US: Mar Online Help Wanted Index

14:30/US: 04/04 EIA Weekly Petroleum Status Report

23:01/UK: Mar RICS Residential Market Survey

23:50/JPN: Mar Bank Lending

23:50/JPN: Mar Corporate Goods Price Index

All times in GMT. Powered by Kantar Media and Dow Jones.

Expected Earnings for Wednesday

Art's Way Manufacturing $(ARTW)$ is expected to report for 1Q.

Buckle Inc $(BKE)$ is expected to report.

Caldwell Partners International Inc (CWL.T) is expected to report for 2Q.

Cogeco Communications Inc (CCA.T,CGEAF) is expected to report $1.67 for 2Q.

Cogeco Inc (CGO.T) is expected to report for 2Q.

Costco Wholesale Corp $(COST)$ is expected to report.

Delta Air Lines Inc $(DAL)$ is expected to report $0.37 for 1Q.

FRMO Corp (FRMO) is expected to report for 3Q.

Firan Technology Group Corp (FTG.T) is expected to report for 1Q.

Goodfellow Inc (GDL.T) is expected to report for 1Q.

Hennessy Advisors Inc (HNNA) is expected to report for 1Q.

Lakeland Industries Inc $(LAKE)$ is expected to report $0.29 for 4Q.

Matinas BioPharma Holdings Inc $(MTNB)$ is expected to report for 4Q.

National American University Holdings Inc (NAUH) is expected to report for 3Q.

Neogen Corp $(NEOG)$ is expected to report $-0.02 for 3Q.

North West Co Inc (NWC.T) is expected to report for 4Q.

PACS Group Inc (PACS) is expected to report for 4Q.

PriceSmart Inc $(PSMT)$ is expected to report $1.44 for 2Q.

Pure Cycle Corp $(PCYO)$ is expected to report for 2Q.

RM2 International Inc $(RMTO)$ is expected to report for Full year.

Simply Good Foods $(SMPL)$ is expected to report $0.35 for 2Q.

Syros Pharmaceuticals Inc $(SYRS)$ is expected to report $-0.38 for 4Q.

Theratechnologies Inc (TH.T,THTX) is expected to report for 1Q.

Yunhong Green CTI Ltd $(YHGJ)$ is expected to report for 4Q.

Powered by Kantar Media and Dow Jones.

ANALYST RATINGS ACTIONS

Advanced Micro Devices Cut to Sector Weight From Overweight by Keybanc

Agco Raised to Buy From Neutral by Citigroup

agilon health Raised to Outperform From Market Perform by Bernstein

AIG Cut to Neutral From Overweight by JP Morgan

Alcoa Cut to Underperform From Buy by B of A Securities

American Airlines Group Cut to Sell From Neutral by Goldman Sachs

Antero Resources Raised to Buy From Hold by TD Cowen

Ares Management Raised to Market Outperform From Market Perform by JMP Securities

Baldwin Insurance Cut to Neutral From Overweight by JP Morgan

Blackstone Raised to Market Outperform From Market Perform by JMP Securities

Bloom Energy Raised to Buy From Hold by HSBC

Bristol-Myers Squibb Cut to Neutral From Buy by Goldman Sachs

Centene Raised to Hold From Underperform by Jefferies

Chegg Cut to Underweight From Neutral by JP Morgan

Dominion Energy Cut to Underweight From Neutral by JP Morgan

Eli Lilly Raised to Buy From Neutral by Goldman Sachs

EQT Corp Raised to Buy From Hold by TD Cowen

Evercore Raised to Market Outperform From Market Perform by JMP Securities

Expand Energy Raised to Buy From Hold by TD Cowen

Fidelity National Fincl Raised to Outperform From Market Perform by Keefe, Bruyette & Woods

First American Financial Raised to Outperform From Market Perform by Keefe, Bruyette & Woods

Fluence Energy Cut to Equal-Weight From Overweight by Barclays

Guild Holdings Raised to Neutral From Underweight by JP Morgan

Knight-Swift Transport Raised to Buy From Neutral by Citigroup

Lemonade Cut to Underweight From Equal-Weight by Morgan Stanley

Levi Strauss Raised to Overweight From Neutral by JP Morgan

Liberty Energy Cut to Equal-Weight From Overweight by Wells Fargo

Occidental Petroleum Cut to Hold From Buy by TD Cowen

Old Dominion Freight Raised to Buy From Neutral by Citigroup

Palomar Holdings Raised to Overweight From Neutral by JP Morgan

PennyMac Fincl Services Raised to Outperform From Market Perform by Keefe, Bruyette & Woods

Pfizer Cut to Neutral From Buy by Goldman Sachs

Ralph Lauren Raised to Overweight From Equal-Weight by Wells Fargo

Rocket Cos. Raised to Equal-Weight From Underweight by Barclays

Ross Stores Raised to Overweight From Equal-Weight by Wells Fargo

RPC Inc Raised to Neutral From Sell by Citigroup

Schlumberger Raised to Overweight From Equal-Weight by Wells Fargo

Schneider National Raised to Neutral From Sell by Citigroup

Skywest Raised to Buy From Neutral by Goldman Sachs

Southern Co Raised to Neutral From Underweight by JP Morgan

Union Pacific Raised to Buy From Neutral by Citigroup

WEC Energy Group Raised to Neutral From Underweight by JP Morgan

Wells Fargo Raised to Overweight From Neutral by Piper Sandler

Welltower Raised to Overweight From Equal-Weight by Wells Fargo

Werner Enterprises Raised to Neutral From Sell by Citigroup

This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

April 09, 2025 06:05 ET (10:05 GMT)

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