Nasdaq turns negative. Here is what’s driving it

US stocks were flying higher earlier today after Congress took a step towards passing a massive corporate tax cut but that’s quickly turned around with the Nasdaq and S&P 500 now both flat.

The drop may reflect high anxiety about Nvidia earnings today but it’s hard to pin it on that given that shares of NVDA are up 2.6% today.

The turn appeared to come after Trump’s cabinet press conference.

Here is how Josh Wingrove at Bloomberg describes it:

The latest on Trump’s tariff plans depends on how you read what he said today.

He said the US is about to announce a 25% tariff on the EU, but may have been referring to sectoral tariffs on autos, which he pivoted to.

And he signaled the Canada and Mexico tariffs poised to take effect next week may get delayed and rolled into a broader April 2 action — but then demurred, and also said it’s going to be tough to convince him to extend next week’s deadline. Markets interpreted it as a delay in those tariffs.

Broadly, he continues to sing the virtues of tariffs, crediting them among other things with leading to Apple’s latest US investment pledge.

In general, I thought Trump offered more good than bad news but he’s been chaotic and the market is losing its appetite for the rollercoaster.

The bond market especially appears to have had enough with rate cut pricing for this year up to 57 bps from 40 bps two weeks ago. The implied odds of a June cut are up to 83% from 45% a week ago. Further out, a strong bid in Treasuries continues including in all this week’s auctions.

This article was written by Adam Button at www.forexlive.com.