In a dramatic lead-up to President Donald Trump’s highly anticipated tariff announcement, U.S. stocks displayed significant fluctuations as traders grapple with uncertainty regarding the implications of the new trade policies.

Scheduled for reveal after the market closes, the tariffs, dubbed as the centerpiece of “Liberation Day,” promise to reshape global trade dynamics and the U.S. economy profoundly.

After an erratic session, the S&P 500 managed to regain some stability, bouncing back from an early 1.1% decline to remain flat by midday. The Dow Jones Industrial Average also showed resilience, climbing 28 points or 0.1%, after surmounting an initial 360 points drop. Conversely, the Nasdaq composite witnessed a slight dip of 0.1% as of 10:35 a.m. Eastern Time.

Financial markets worldwide are currently on edge, with traders anxious about the specifics of the tariffs Trump is expected to unveil. The president has emphasized that these tariffs are intended to create a fairer global trading system and bring back manufacturing jobs to the U.S., a promise that resonates with many American workers.

However, critics warn that such tariffs could potentially stifle economic growth domestically and internationally while exacerbating inflation, which is already exceeding the Federal Reserve's target of 2%.

Among the uncertainties, critical questions loom over the size of the tariffs, targeted nations, and the products impacted. Experts suggest that the announcement might only serve as a starting point for negotiations rather than providing decisive clarity to Wall Street’s concerns.

Despite the anxiety surrounding tariffs, some analysts believe that the worst of the uncertainty may soon be over. Kurt Reiman, a strategist at UBS Global Wealth Management, expressed optimism that "peak tariff uncertainty may soon be behind us," suggesting that much of the groundwork for policy changes has already been laid out.

Following the tariffs, Trump will also implement previously announced levies, including a 25% tax on imported automobiles and tariffs focused on trade with China, Canada, and Mexico. Notably, the government has indicated plans for separate duties on pharmaceutical products, lumber, copper, and computer chips, further complicating the trade landscape.

Market fluctuations continue to be influenced by concerns that these erratic tariff strategies could lead to reduced consumer and business spending, which would ultimately hamper economic growth. While surveys indicate growing pessimism among consumers, a report released on Wednesday from ADP Research revealed that U.S. job growth continued to outpace estimates, suggesting that the job market remains robust.

This data is crucial as it bodes well for the upcoming non-farm payroll report that economists anticipate will show a slowdown in hiring for March compared to February.

In the bond market, Treasury yields saw a decline in response to ongoing worries about tariff implications, falling to 4.14% from 4.17%, marking a significant reduction from approximately 4.80% earlier this year.

Amid these developments, investor sentiment is being impacted by individual company performance. Tesla's shares fell sharply after the company reported weaker-than-expected electric vehicle deliveries for the quarter, shedding 3% of its value and deepening a year-to-date loss of 35.5%. The electric vehicle maker, which significantly influences market trends, is facing increased scrutiny due to CEO Elon Musk's controversial stances.

Meanwhile, airline companies showed signs of recovery after recent declines attributed to tariff-related fears. United Airlines rose 1.4%, slightly easing its weekly losses.

The rollercoaster nature of trading wasn't confined to the U.S. markets alone, as European indexes trended downwards following mixed results in Asia. As April 2 approaches, the market watches warily for Trump's major announcement on tariffs, knowing that the ramifications could be felt for months to come.