CNBC Business News Update - Market Close: Stocks Higher, President Trump Announces Sweeping Tariffs, Tesla Shares Higher On Reports Musk To Leave DOGE 4/2/25

Episode Date: April 2, 2025

From Wall Street to Main Street, the latest on the markets and what it means for your money. Updated regularly on weekdays, featuring CNBC expert analysis and sound from top business newsmakers. Anchored by CNBC's Jessica Ettinger.

I'm Jessica Edinger CNBC Wall Street opens Thursday morning after a winning day for stocks and an announcement of sweeping tariffs from President Trump. On Wednesday the Dow was up 235 points about a half a percent it was led higher by shares of Goldman Sachs. The S&P 500 index was up 37 points That was a little more than a half percent. And the Nasdaq was up 151 points, eight-tenths of a percent. Gold set its 19th record high close of the year Wednesday. President Trump announced sweeping tariffs on goods from 60 countries at varied rates.

20 percent on items coming in from the European Union, 24% on items from Japan, and many more. Plus, reciprocal tariffs of at least 10%. I will sign a historic executive order instituting reciprocal tariffs on countries throughout the world. Reciprocal. That means they do it to us and we do it to them. Very simple. Can't get any simpler than that. The president also announced that interest on car loans will be tax deductible for those

who buy American made vehicles. For the cars, we're asking for an interest deduction on a loan. So if the car's not built in America, you don't get the interest rate deduction. But if you build the car in America, if you buy a car, if it's built in America, then you get an interest rate deduction, tax deduction. CNBC Mad Money host Jim Cramer has been talking to business leaders about the Trump tariff agenda. I hear people say that it's really morphed into we're going to raise a lot of money and

you're going to get a tax cut. Investors are hoping that negotiations begin, but some say the damage of tariffs is already done. The ramifications are very strong. I mean, we already see a big decline in, in travel by foreigners into the United States. I mean that, that hits the service sector. There may be some boycotts of us goods. And of course the big wild card, as we all know, is the potential retaliation.

Wharton professor Jeremy Siegel on CNBC. Average Americans will be paying higher prices. It's going to be nearly impossible for us not to see prices increase at the grocery store. What's interesting, though, is if you have a retailer, say, like a Target or a Walmart, maybe they want to hold the price on an avocado, but maybe they raise it somewhere else, right?

That's sort of how they work with their portfolio of items. It may not be exactly clear where those higher costs come out for us, product by product, groceries operate on a very, very thin margin. I think we could be in for a sticker shock. CNBC's Courtney Reagan. Amazon shares up 1% on Wednesday

on reports that Amazon is now vying to buy TikTok. The Chinese-owned app sits on the phones of half the U.S. population, and the CCP, Chinese Communist Party, hasn't said it's for sale. Congress passed a law to ban or shut down TikTok. Tesla shares higher on Wednesday on reports that Elon Musk will soon be leaving government, Tesla popping 5%. Prices at the pump higher. AAA says the national average

for a gallon of regular now $3.23 up 13 cents a gallon in the past month as summer blends hit gas stations. On Thursday's watch list, investors will be evaluating the new tariffs. Earnings are coming from ConAgra and potato supplier Lamb Weston. We find out how many people applied for unemployment benefits last week and Subway adds hot honey sandwiches to menus. Jessica Edinger, CNBC.

Amid tariff uncertainty and downgrades to growth, the March jobs report numbers and analysis. Squawk Box, Friday, 8.30 a.m. Eastern, CNBC.