Market Sell-Off on Wall Street After Historic Rally 04/10/25

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Carl Quintanilla (0:59)

Market moving insight and analysis. Join Jim Cramer, David Faber and me, Carl Quintanilla on the opening bell hour of CNBC Squawk on the Street.

David Faber (1:13)

Good Thursday morning, welcome to Squawk on the Street. I'm David Faber with Jim Cramer. We're live postline at the New York Stock Exchange. Carl's on assignment. Let's give you a look at futures, of course, after that historic rally yesterday. In the afternoon, we are looking for a down open, perhaps a fairly significant decline when stocks do begin to trade a half hour from now. Our roadmap does begin with that tariff turnaround, of course. And as I just said, we may see a bit of a give back of that historic gain this after the president reversed course and instituted that 90 day reprieve, at least on some of the global tariffs that were in place for a very short time. We're going to talk with the latest, well, with one of Tops Trump's economics aides, the chair of the White House Council of Economic Advisers, plus the fragile outlook for technology, Apple, mega cap names. They had huge gains yesterday, but Amazon's Andy Jassy telling CNBC, there remains to be a, quote, a lot of flux right now. And I might weigh in on US Steel, although frankly, I got nothing to tell you there, other than what the president said.

We need something for the third item on the roadmap. You got to have three items on your roadmap.

Jim Cramer (2:32)

Is that what it is?

SPEAKER_2 (2:33)

Yeah, every day.

David Faber (2:33)

Got to have three. All right, let's get back to number one, which is the market. So we're here, we were yesterday, all about the bond market, of course. The last two days, in fact, we really were focused on that tenure, and rightly so.

SPEAKER_2 (2:45)

Totally.

David Faber (2:46)

It does appear the bond market gave power to Scott Besant. Perhaps our Treasury Secretary, when he walked in and said to the president, and I don't know what was said, but hey, you may want to think about reversing course here. The president actually later in the day yesterday indicated he'd been thinking about it for a few days. And then we saw, I mean, we saw a day like the likes of which we haven't seen in a very long time.

Jim Cramer (3:09)

Well, David, the word that I kept hearing about is failed. That it would be a failed auction.

David Faber (3:16)

It wasn't.

Jim Cramer (3:17)

It wasn't.

Emily Wilkins (3:18)

No.

Jim Cramer (3:18)

And therefore it was a save. Once that save was made, in part because of what the president did, you overrun what was the easiest trade of the year, which was to short Mag-7, short technology, short semiconductors, and everything reversed. Now see today, if you're short, and the shorts are more or less the motif, they're feeling good because it's down, but they're going to cover. They're going to cover because they got hurt so badly yesterday that their bosses are saying, we want your books more. That's historically what happens in these situations. So you may see all these down, but they're not going to go back to where they were because we're building in estimate cuts for everybody. And once they're all built in, then it's like 87 They're all built in, then you got to start figuring out who is building too low. Right.

David Faber (4:08)

All right. So, you know, are the expectations now, what is the playing field? 10% across the board tariffs and then a trade war with China. Right. Now we got 90 days. So right after the July 4th weekend, we may get a lot of focus on what's going to happen or perhaps we'll have something occur in these next 90 days, given the potential for negotiations with a lot of those trading partners. But what does that world look like?