CNBC Business News Update - Markets Midday: Tariff Retaliation Tanks Stocks Again, Fed's Powell Says Rate Cuts Aren't Imminent, Apparel Makers Stage Partial Comeback 4/4/2025

Episode Date: April 4, 2025

The latest in business, financial, and markets news and how it impacts your money, reported by CNBC's Peter Schacknow

I'm Peter Shack, now CNBC. Stocks are tanking once again following the announcement by China of retaliatory tariffs on the United States. With today's losses, the S&P 500 and NASDAQ are on pace for their largest weekly losses in more than five years. The Dow tumbling 1,410 points to 39,136. The S&P 500 with a 4% slider, 216 points, and the NASDAQ composite also down 4% or 665 points.

Carrie Firestone, co-founder of Aureus Asset Management, isn't surprised at what's transpired following President Trump's tariffs announcement. We've started this and this was inevitable. You know, what's very concerning is that we've seen the reaction of all of the retail, apparel, footwear, furniture stores, everything that was consumer related had such an incredible shift downward yesterday. We're going to see more of that today, but it's going to expand to other sectors. And there doesn't seem to be an end in sight right now.

Traders had been betting on an acceleration of interest rate cuts by the Federal Reserve, given that the tariffs are seen significantly slowing economic activity. But Fed Chairman Jerome Powell says the central bank will not move on rates until it gets a clearer picture on the economic impact. Crude oil is off the lows of the session,

but still down 7.5% on concerns about a possible drop in demand. Some clothing and apparel makers that took big hits yesterday on the tariff news are making partial comebacks today. Nike is up more than 4%, Decker's Outdoor jumping 5.5%, and Lululemon rebounding by 3.3%. Peter Schacht now, CNBC. When you think of wealth, what do you see?

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