SOTS 2nd Hour: Stocks Tumble After Historic Rally, Inflation Rate Eases, Tech Tumbles Again 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.

Sara Eisen (1:13)

Good Thursday morning, welcome to Squawk on the Street. I'm Sara Eisen with David Faber and Mike Santoli. We are live as always from Post Night of the New York Stock Exchange. Carl's on assignment. Stocks are under pressure again. After that epic rally we saw yesterday where the NASDAQ closed up 12%.

Best day since 2008 We are giving some of it back today. Down 2.86%, which would normally be a pretty steep sell off, but given the magnitude of the moves we're used to these days, four or 5% in the major averages, it looks tame. Dow is only down 957 points. Usually that would be a big red flag and a big sort of indicator of weakness. The only group that's higher right now in the market is consumer staples. It's up about half a percent. Everybody else is lower. Energy is at the bottom of the pack again, down 5%. Take a look at treasuries. They've been the eye of the storm lately. That sell off in treasury certainly got the White House's attention. We are seeing it back off a little bit. 4.3, though, that's elevated from where we were, below 4% earlier this week. 30-year yield, watch carefully. We'll get another bond auction. Yesterday's tenure was very successful. Let's see what the 30-year yields today.

Mike Santoli (2:20)

All right, we are 30 minutes into the trading session. Here are some big movers we're watching, starting with the big jump in European markets, rising sharply after President Trump temporarily reversed course on tariffs, at least most of them banking, tech and industrial stocks, notching the biggest gains. Obviously, that follows the huge gains in the US yesterday. We continue to monitor the bond market. David, as Sara said, the iShares National Muni Bond ETF moving higher, following a dramatic drop earlier this week. So, again, recovery in all areas of the bond market from the brink. And take a look at the weakest S&P sector so far today. They are energy, tech, and consumer discretionary. Among the biggest laggards in early trading, of course, they were the leaders, at least consumer discretionary and tech were. Coming off the low staples, the only sector higher so far today.

David Faber (3:09)

We continue to monitor the fallout from President Trump's reversal and his pause of tariffs on dozens of countries, except, of course, China. Eamon Javits joins us from the White House. He has some of the latest news for us.

SPEAKER_1 (3:21)

Eamon.

Eamon Javers (3:22)

Hey there, David. As the dust settles here after the president's reversal on tariffs yesterday, the focus here is now on what comes next. White House trade adviser Peter Navarro told me that the administration is going to come up with a schedule for negotiations, given that they just can't physically conduct 75 simultaneous trade negotiations with the countries that are interested in that, which leaves the big open question of what's going to happen with China, where President Trump is increasing tariffs. National Economic Council Chair Kevin Hassett on CNBC this morning predicted there will be negotiations.

Kevin Hassett (3:57)

It's an absolute extreme disruption for the Chinese economy right now that's come because of repeated terrible behavior on their part, including aiding and abetting the fentanyl trade. And so I think China is going to have to figure something out, and my guess is it's going to involve reaching out to us and setting up talks.

Eamon Javers (4:16)

But Chinese Embassy spokesman Liu Pengyu striking a defiant tone in a statement today, saying, if the US wants to talk, our doors remain open, but dialogue must be conducted on the basis of mutual respect and equality. If the US is bent on waging a trade war, China will fight to the end. And guys, if we're tracking, which factions have the upper hand here at the White House now, I'm told that there were only three people in the Oval Office yesterday making the decision to reverse course. They were Commerce Secretary Howard Lutnick, Treasury Secretary Scott Bessent, Trade Advisor Peter Navarro, a staunch advocate of tariffs, I'm told, was not there. One other thing I'm told, guys, this morning is that there's going to be a series of meetings here at the White House throughout the morning as they work on how to tier these negotiations, which countries go first, which come in the second tier, which come in the third tier, et cetera. All that being worked out behind the scenes right now, guys. Back over to you.