Stock Market Today: Dow, S&P 500, Nasdaq Set to Open Up To End Wild Week of Trump Tariffs; Dollar Drops; Tesla, Palantir, More Movers; Bank Earnings

U.S. stocks were heading for gains early Friday, rebounding from earlier losses as traders assess trade tensions between Washington and Beijing after China announced a 125% tariff on U.S. goods.

Dow Jones Industrial Average futures were up 95 points, or 0.3%. S&P 500 futures were also rising 0.3%, as were those tied to the Nasdaq 100.

U.S. equity markets have moved sharply in recent days. After historic gains on Wednesday when President Donald Trump said he was pausing the majority of reciprocal tariffs, stocks gave up a significant proportion of the gains on Thursday as the market digested escalating trade tensions between the U.S. and China.

The White House said Thursday that the tariffs imposed on China by Trump in his second term add up to 145%, not the 125% it previously indicated. China said Friday that it would increase levies on U.S.-made goods to 125% but wouldn’t match any further increases by the U.S., saying American imports are no longer marketable under current levels.

“While this difference is negligible in any practical economic sense, the market reaction showed an increased sensitivity to the risks of a disorderly economic decoupling between the world’s two largest economies,” wrote Deutsche Bank analyst Peter Sidorov in a research note on Thursday.

The Trump administration is negotiating deals with more than 70 countries hoping to escape higher tariffs ahead of the new July 8 deadline, according to The Wall Street Journal.

Fears around demand for U.S. government debt were calmed on Thursday by solid demand at an auction of $22 billion in 30-year Treasury bonds. The yield on the benchmark 10-year Treasury note stood at 4.434% early Friday, broadly flat from the previous day.

There was also incremental good news in the form of cooling inflation, as the consumer-price index fell a seasonally adjusted 0.1% in March, the first time it recorded a month-over-month decline since May 2020. However, analysts noted that the inflationary effect of tariffs could soon change the picture.