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U.S. stock futures sink as China announces retaliatory tariffs as U.S. import taxes take effect, sending global stocks lower; Delta Air Lines (DAL) stock rises as the company tops first-quarter estimates; Cal-Maine Foods (CALM) shares drop after the largest U.S. egg producer says it is cooperating with a Justice Department investigation; and Microsoft (MSFT) overtakes Apple (AAPL) as the world's most valuable publicly traded company as the iPhone maker's stock plummets on tariff concerns. Here's what investors need to know today.
1. US Stock Futures Fall on China's Retaliatory Tariffs
U.S. stock futures are dropping after China announced retaliatory tariffs on U.S. imports. Nasdaq futures are down 1.7% after the tech-heavy index shed 2.2% Tuesday. S&P 500 futures are 2.1% lower and Dow Jones Industrial Average futures are down 2.2% lower. Bitcoin (BTCUSD) is ticking lower to trade at around $76,000. Yields on the 10-year Treasury note are jumping above 4.4%. Gold futures are surging while oil futures are sinking nearly 6% to just over $56 a barrel.
2. Trump's 'Liberation Day' Tariffs Take Effect
President Donald Trump's "reciprocal" tariffs on U.S. trading partners took effect just after midnight ET Wednesday, targeting imports from China, the European Union, Japan, and many other nations. Chinese imports face a 104% duty, while the EU was hit with a 20% tariff, Japan with a 24% tariff, South Korea with a 25% tariff, and Vietnam with a 46% duty, among others. Global stocks plunged as the tariffs took effect, with the Japanese Nikkei closing down by nearly 4%, and the Stoxx Europe 600 index is falling 4%, exacerbated by China's retaliatory move.
3. Delta Air Lines Q1 Results Top Estimates But CEO Warns of 'Uncertainty'
Delta Air Lines (DAL) reported better-than-expected first-quarter results but said it is not affirming or updating full-year projections "given current uncertainty." Delta reported adjusted earnings per share (EPS) of $0.46 on operating revenue of $14.04 billion. Analysts polled by Visible Alpha had forecast $0.39 and $13.89 billion, respectively. The company also said it was reducing planned capacity growth in the second half of the year. "With broad economic uncertainty around global trade, growth has largely stalled," CEO Ed Bastian said. Shares are slightly higher in premarket trading.
4. Cal-Maine Foods Stock Falls Amid DOJ Investigation Into Egg Prices
Cal-Maine Foods (CALM) shares are down 5% in premarket trading after the largest U.S. eggs producer announced it was cooperating with a Justice Department investigation into egg prices. "Management cannot predict the eventual scope, duration or outcome of this investigation and is unable to estimate the amount or range of potential losses, if any, at this time," the company said. Cal-Maine Foods reported that its earnings per share (EPS) more than tripled year-over-year to $10.38 and revenue more than doubled to $1.42 billion as egg prices soared.