SOTS 2nd Hour: Stocks Stage A Rebound: The Tariff Playbook, Plus Outlook for Energy & Semis 4/8/25

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Sara Eisen (0:59)

Good Tuesday morning. Welcome to Squawk on the Street. I'm Sara Eisen with David Faber and Mike Santoli today live at Post9. As always from the New York Stock Exchange, Carl's on assignment. Stocks are rallying. The S&P is coming back. 3.6 percent rally we've got on our hands. Every sector is higher and if you look at the groups leading, financials at the top of the pack, four and a half percent gains, industrials are up there. So a lot of these cyclical groups that got just battered were nowhere near to making up the losses that we've seen, but we are seeing a nice rally here that is broad-based. The small cap's up 3 percent. Look at the Nasdaq. It's up 4 percent because tech was among the hardest hit in this sell-off over tariffs. Take a look at Treasuries right now. Remember, the story has mostly been buying bonds with lower yields. That reversed yesterday and continues to reverse today. The 10-year yield higher at 4.25, around, let's call it, the 2-year yield above 3.8 percent. David.

David Faber (1:54)

Well, we've got some important testimony, at least possibly on Capitol Hill this hour. President Trump's chief trade negotiator, Jamieson Greer, is appearing before the Senate Finance Committee. This, of course, after the administration's decision to impose tariffs on pretty much every country in the world, and the penguins, too. Don't forget them. We're going to bring you the headlines, of course, as they happen, and that will be this hour, Sara.

Sara Eisen (2:18)

Yeah, the negotiations, though, I think, is what the market is cheering today. We're 30 minutes here into the trading session. Here are some movers we're watching in today's Big Rebound. Some green shoots for shares of American automakers, except for Stellantis. All of these stocks, nearly 30% or more off their highs at this point of the year. Coming back strong, look at Tesla, 5%. Also seeing gains for some beaten down consumer names, especially in the cruise lines. Names like Carnival Cruise up more than almost 7% right now. Apple shares coming off their worst three-day stretch since 2001 As Big Tech tries to catch a bid this morning, NVIDIA leads the charge. That's good for the market. It's been a big market leader until it wasn't. And then unrelated to tariffs, Medicare insures, some of the biggest gainers of the morning, on news that the Trump administration will substantially increase payment rates next year. More on what that means for the group in just a moment. But, guys, we are in the negotiation stage and the market is feeling better about that. I mean, let's just start with what we got in the last hour from President Trump himself on Truth Social. He was talking about just talking with South Korea, but this is the key quote because we've seen China, US ramp up in terms of just this fight on tariffs. Here's what he said. China wants to make a deal badly, but they don't know how to get it started. We are waiting for their call. It will happen. I consider that an olive branch, honestly, after what's been going on a little bit. I mean, at least like he's inviting them to make a call to make a deal. That's progress, I think, considering what we had before. Overnight, the news was all just teated rhetoric from China to Chinese Commerce Ministry after the threat of more tariffs on China. The US threat to escalate tariffs on China is a grave mistake on top of an existing one, which will once again expose the US blackmail nature.

China will never accept this. If the US insists on its own way, China will fight to the end. And Secretary Besant this morning on Squawk Box said that China's making a mistake about how it's going about it. Listen.