China announced April 1 that it had begun imposing tariffs of 15 to 25 percent on 128 US products in a move seen as retaliation against Trump's increased tariffs on imports of steel, aluminum and some Chinese goods. Fundamentals are holding the stock market up. At the same time, the Dow's price reached the top side (point 1) of a 70-year rising channel (point A).
Shares of the electric carmaker Tesla slid 5.1 percent after the company's disclosure late Friday that its Autopilot system had been engaged in a Tesla vehicle involved in a fatal crash in California last month.
State Street rose 1.2 percent Tuesday.
INVESTOR INSIGHT: "The much-anticipated us tariffs list finally saw the light of day and would be one for markets to digest in today's session", said Jingyi Pan, market strategist at IG.
The S&P 500 added over 32 points at 2,614. It dropped 2.2% a day earlier.
Despite big swings in stocks, trading activity in USA equity options was muted as expectations for strong corporate earnings quelled the urge to load up on contracts that benefit from a surge in market volatility.
GETTYTRADE WAR Trump hit China with tariffs last month
Volume on US exchanges was 7.14 billion shares, compared to the 7.31 billion average for the last 20 trading days.
"As a sector, technology has the most to lose from a world in which global trade is restricted and of course, some of the subjects of the tariffs, will also be hit", said Rick Meckler, president of investment firm LibertyView Capital Management in Jersey City, New Jersey.
Stocks have fluctuated over the course of the trading session on Tuesday and are seeing moderate strength in mid-day trading. Shares fell 3.2% on Wednesday.
Proteostasis Therapeutics Inc. climbed 6.5% after the Food and Drug Administration gave a "fast track" designation (http://www.marketwatch.com/story/proteostasis-shares-surge-12-on-fda-fast-track-designation-for-cystic-fibrosis-treatment-2018-04-04) to its cystic fibrosis treatment. We're on the verge of the earnings reporting season. Amazon (NASDAQ:AMZN) added 1.52% to US$1,392.80.
With pork products among the goods subject to the Chinese tariffs, shares in Tyson Foods, a major US meat company, dropped 6.3 percent Monday.