US stocks fell sharply in the afternoon session, set to end a three-day winning streak, as renewed tariff concerns and waning tech momentum unsettled markets. The S&P 500 declined 1.30%, the Nasdaq 100 lost 2.20%, and the Dow Jones reversed earlier gains, dropping 200 points. The downturn comes ahead of a wave of trade measures expected next week heightening fears of prolonged economic uncertainty. Investor sentiment remained fragile, particularly after Fed official Alberto Musalem cautioned that tariff-driven inflation could slow progress toward the 2% target.

European markets also declined on Wednesday, with the Stoxx 50 down 1.40% and the Stoxx 600 slipping 0.70%, as concerns over potential US auto tariffs weighed on sentiment. The auto sector led the declines, falling around 2.50%, following reports that US President Donald Trump was preparing to update trade measures, possibly introducing tariffs on vehicle imports. The industry, heavily reliant on North American trade, has faced ongoing uncertainty, especially after President Trump granted a temporary tariff exemption in March.

Meanwhile, Japanese stocks posted gains, with the Nikkei rising 0.65% on Wednesday for a second consecutive session, supported by overnight strength on Wall Street and hopes for a softer stance on President Trump’s reciprocal tariffs. The Hang Seng also climbed 0.60%, partially recovering from a near two-week low in the previous session. Market sentiment improved after the Trump administration suggested upcoming US tariffs may be more targeted than initially anticipated. Traders also responded positively to Morgan Stanley raising its 2025 year-end targets for Chinese stocks, while Goldman Sachs strategists predicted further gains driven by positive earnings revisions.

WTI crude oil futures surged to $69.90 per barrel, the highest level in nearly four weeks, amid concerns over tightening global supply. The US threatened to impose 25% tariffs on nations purchasing Venezuelan crude, disrupting trade flows, particularly to China, Venezuela’s largest buyer. This follows recent US sanctions on Iranian oil sales, though Saudi Arabia may boost production to compensate for lost Iranian exports.

The local bourse rallied for the second consecutive day on Wednesday, adding 0.24% at close of trade. The rand also continued enjoying a strong showing trading at R18.25/$ at 17h45 local time.