U.S. stock markets closed higher on Wednesday ahead of President Donald Trump's announcement of a sweeping tariff plan. The Dow Jones Industrial Average rose 0.56% to 42,225 points, the S&P 500 gained 0.67% to 5,670 points, and the Nasdaq advanced 0.87% to 17,601 points. The market showed volatility earlier in the session but recovered as investors positioned themselves for the announcement. Tesla shares rose 3.4% in after-hours trading following Trump's announcement of a 25% tariff on imported automobiles. The tariff plan, described as reciprocal, is expected to immediately impact global trade and supply chains. Analysts are concerned about its potential to slow economic activity and increase market uncertainty. The tariff announcement, which includes reciprocal measures, has raised concerns about its effects on U.S. trading partners and industries. Investors are closely monitoring the response from affected countries and its broader impact on the global economy. Additionally, S&P futures reversed earlier gains during the announcement.