Wall Street's major averages stepped back from intraday highs Wednesday afternoon, ahead of President Donald Trump outlining a plan to impose reciprocal tariffs on imports coming into the U.S.   

The S&P 500 (SP500) was flat, and the Nasdaq Composite (COMP:IND) +0.1%, relinquishing stronger advances. Each average had fallen more than 1% early in the session. The Dow (DJI) straddled the flat line. It had lost nearly 1% earlier.

In the bond market, the 10-year Treasury yield (US10Y) was up 1 basis point to 4.21%. The 2-year yield (US2Y) gained 5 basis points to 3.92% as prices fell. 

Investors were waiting for details on the Trump administration's “Liberation Day” plan to impose large-scale tariffs on trading partners. The administration so far has said tariffs will "start with all countries" and will be "effective immediately."

President Trump was slated to appear in the Rose Garden at 4 pm ET. Sky News reported Wednesday the administration was aiming to band levies by country and industry. The Wall Street Journal reported Tuesday that the U.S. Trade Representative's office was preparing a third option for tariffs that would be lower than a potential 20% universal levy.

Shares of Trump Media & Technology Group (DJT) fell -6.6% on Wednesday. Meanwhile, Tesla (TSLA) shares +5.4%, reversing course after a Politico report said Trump had told his inner circle that Elon Musk would be stepping down from his government role and returning to his businesses, citing three Trump insiders. The White House's press secretary in a post on X called the report "garbage." 

Musk has become an increasingly polarizing figure since fronting Trump's initiative to slash the federal government's size, and ire against him appears to have dented sales of his Tesla (TSLA) electric vehicles. 

Tesla's (TSLA) share-price gain helped drive the Consumer Discretionary sector (XLY) up +1.9%. Overall, eight of the 11 S&P 500 (SP500) sectors rose. 

Ahead of the tariff announcement, the ADP National Employment Report released showed March U.S. private sector employment came in at +155K vs. +120K consensus and +84K prior, upwardly revised from +77K. 

Elsewhere in markets, the U.S. Dollar Index (DXY) -0.4% at 103.81. "The harsher the [tariffs] announcement is perceived to be, the greater the likelihood that the dollar will weaken, as traders factor in a scenario of slower US growth, potentially forcing the Federal Reserve to cut rates faster than previously expected," Ricardo Evangelista, senior analyst at ActivTrades, said. 

For the Federal Reserve, a strategy of “looking through” tariffs is weaker now than during Trump 1.0 because inflation is running above target, Dario Perkins, managing director of global macro at GlobalData TS Lombard, said. 

The Fed “won’t cut interest rates until there are unambiguous signs of weakness in the economy (particularly in the labor market). And that is bad news for financial markets, particularly compared to the situation in 2024 when the Fed was cutting rates pre-emptively,” Perkins said in a note.

“A Fed that is waiting for something to go wrong in the economy is by definition more reactive, and in danger of falling behind the curve," Perkins said. 

Besides new tariffs, 25% levies on cars not made in the U.S. and secondary tariffs on nations that purchase crude oil from Venezuela were set to go into effect this week, the Trump administration has said. 

Wall Street's major averages finished mixed Tuesday in the jumpstart of Q2 action.