Early on Wednesday, the US stock market showed a varied performance as investors evaluated the potential impact of a trade war following China's announcement of an 84% tariff on American products.

The S&P 500 index dropped by approximately 0.1%, while the Nasdaq Composite saw a 0.5% increase. In contrast, the Dow Jones Industrial Average fell by 0.4%, experiencing a decrease of over 150 points.

Simultaneously, the 10-year Treasury yield witnessed a notable increase, nearing 4.5%. Over the last three trading days, it has surged by more than 50 basis points, marking the most significant three-day rise since 2001.

In response to the US imposing substantial tariffs on Chinese exports, China retaliated by raising tariffs by 84%, escalating tensions between the two major trading partners. This move has raised concerns about the potential global economic repercussions.

Amid the uncertainty, investors found some optimism in statements from Treasury Secretary Scott Bessent, who expressed hope for positive trade negotiations with Japan and South Korea. The Federal Reserve's meeting minutes from March and the forthcoming Consumer Price Index report are anticipated to provide insight into the economic landscape prior to the implementation of the new tariffs.