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US equities and cryptocurrencies stalled Tuesday afternoon, reversing earlier gains after the White House dashed hopes that international tariff negotiations were on the table.
The S&P 500 and Nasdaq Composite — after rallying more than 4% each at the start of the session — were back in the red by the close, ending the day about 2% and 1% lower, respectively.
Bitcoin and ether were trading 4% and 6% lower on the day at 4 pm ET. Bitcoin, which briefly appeared insulated from the broader market selloff, is now down more than 12% since President Trump’s “Liberation Day” announcement.
Tuesday’s early stock rebound appeared to be spurred by optimism that Trump may walk back aggressive global tariffs unveiled last week. Treasury Secretary Scott Bessent said during a Tuesday morning CNBC appearance that there may be “some good deals” on the table.
Read more: Stocks whipsaw, BTC holds onto $78K as investors trade on ‘fake news’
The rally then stalled when hours later Trump confirmed that tariffs as high as 104% on Chinese imports will go into effect at midnight, unless Beijing reverses its retaliatory tariffs on the US.
Investors continue to try and parse through mixed messages from the Trump administration about the permanence of tariffs, and the likelihood of any deals with foreign nations.
Commerce Secretary Howard Lutnick over the weekend insisted that “there is no postponing” these new tariffs, even as the administration extended the deadline on previously announced levies.
Also on Sunday, Peter Navarro, White House senior counselor for trade and manufacturing, said “this is not a negotiation” when asked about potentially adjusting tariffs. Later that same day, Trump said he was “open to talking” to other countries, adding that he’s already had several calls.
US trade representative Jamieson Greer on Tuesday confirmed to the Senate Finance Committee that almost “50 countries” have reached out to discuss “reciprocity.” Hopes for a deal with China, though, are slim.
Coming up this week investors will have two key inflation prints, the Consumer and Producer Price Indexes, to be released Thursday and Friday, respectively, to digest. Odds the Federal Reserve will abandon their current pause and cut interest rates in May rose on Tuesday to 51%, up from 19% a week ago, according to data from CME Group.
