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Russian (RU) Updated Thu, Apr 10, 2025, 5:05 AM 2 min read
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US stock futures sank on Thursday, pulling back after the major indexes staged a historic rally amid concerns that President Trump's broad trade offensive has become a direct confrontation with China.
S&P 500 futures (ES=F) dropped 1.6%, while those on the tech-heavy Nasdaq 100 (NQ=F) tumbled 1.9%. Dow Jones Industrial Average futures (YM=F) fell 1.3%, or around 500 points. The 10-year Treasury yield, (^TNX) in high focus amid bond market whiplash, fell to around 4.3%.
Markets on Wednesday breathed a loud, collective sigh of relief after Trump paused many of the largest US tariff hikes on trading partners, with stocks notching one of their biggest one-day rallies since World War II.
But now Wall Street is weighing Trump's remarkable escalation in the US trade battle with China, after he raised levies on imports from the country to a whopping 125%. That hike came after Beijing raised its tariff on US goods to 84% in retaliation to an earlier hike.
CME - Delayed Quote USD
As of 8:05:32 AM EDT. Market Open.
ES=F YM=F NQ=F
"The trade war is now turning into a direct confrontation between the US and China ... we could again be seeing escalation and de-escalation at the same time, pulling markets in different directions," Rabobank analysts said.
And though a wider trade war is on hiatus, risks remain to the health of the US economy, and Trump's move is "merely the end of the beginning," according to JP Morgan.
Other parts of the president's trade-policy overhaul are still in effect, including a 10% baseline tariff on most trading partners, 25% duties on steel and aluminum imports, and 25% duties on auto imports. Those elements could still lead to consequences analysts have warned about, such as rising prices and slower economic growth.
Read more: Live updates on Trump tariffs fallout
Some relief came on Thursday morning as the EU said it will hold off from implementing counter-tariffs on US goods for 90 days, matching Trump's pause.
Later in the morning, investors get a snapshot of largely pre-tariff inflation with the release of March's Consumer Price Index. A weekly reading on jobless claims will provide a more timely picture of the labor market, as several Fed officials step up to speak during the day.
LIVE 8 updates
Europe stocks jump as EU matches Trump's tariff pause
Stocks in Europe surged on Thursday, in contrast to on Wall Street, as investors welcomed President Trump's U-turn on "reciprocal" tariffs for many of the countries targeted.
Helping lift spirits was the EU's decision to put its retaliatory tariffs against the US on hold, matching Trump's 90-day pause on his sweeping "reciprocal duties.
The pan-European Stoxx 600 (^STOXX) benchmark climbed 5.1%, having surged by the most in five years at the open.
Germany's benchmark DAX index (^GDAXI) climbed 5.6%, while France's CAC (^FCHI) in Paris rose 5%. In London, the FTSE 100 (^FTSE) advanced 4.2%.
US Steel shares slide after Trump says he doesn't want it to 'go to Japan'
US Steel (X) stock fell 10% in premarket after President Trump said he didn't want the American producer to "go to Japan" suggesting he opposes Nippon Steel's $14 billion bid for the company.
Shares were last trading at $40.64 each, well below Nippon Steel's $55 a share offer price.
Trump's comments come just days after he told a US national security panel on Monday to take a fresh look at the proposed deal, lifting hopes it could get a so-far elusive green light.
Reuters reports:
March CPI report could be last time investors see inflation easing
Yahoo Finance's Allie Canal reports:
The 'Trump put' makes an appearance
Yahoo Finance's Hamza Shaban reports:
This is the takeaway from today's Morning Brief. Read more here.
Good morning. Here's what's happening today.
TSMC reveals first quarter revenue earnings well above market expectations
Oil prices drop as trade war with China continues to spread uncertainty
Oil prices dropped as US President Donald Trump continued to escalate his trade war with China. A 90-day pause on 'reciprocal' tariffs failed to bolster the commodity's price globally.
Reuters reports:
Asian markets pump as pause on tariffs builds positive sentiment
Asian markets rebounded sharply after President Trump announced a 90-day pause on tariffs affecting the majority of countries across the region. However, caution lingered as traders remained uncertain about a long-term resolution, though Japanese and South Korean indexes saw their biggest gains since August.
Bloomberg reports
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