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US stock futures cratered on Friday, setting up for more losses after a $2.5 trillion wipeout as trade-war fears continued to spook markets waiting for the monthly jobs report and a Jerome Powell speech.
Dow Jones Industrial Average futures (YM=F) pulled back 3.2% or over 1,300 points. S&P 500 futures (ES=F) sank 3.4%, while contracts on the tech-heavy Nasdaq 100 (NQ=F) dropped 3.7%.
Stock losses accelerated before the bell after China said on Friday it will impose additional tariffs of 34% on all US products from April 10 — matching the extra 34% duties imposed by Trump on Wednesday.
That ramped up investor worries that countries are more likely to retaliate than negotiate, leading to a protracted global trade war.
CBOT – Delayed Quote USD
As of 8:13:12 AM EDT. Market Open.
YM=F ES=F NQ=F
On Thursday, investors fled risk assets in the wake of the punishing reciprocal tariffs laid out by President Trump, with markets worldwide going into a tailspin as US stocks booked their worst one-day sell-off since 2020.
Trump, speaking to reporters aboard Air Force One on Thursday, said the rollout of his tariffs is “going very well.” He added that he is open to “phenomenal” offers from countries to negotiate down the new rates.
Read more: The latest on Trump’s tariffs
Economists are warning that with tariffs as-is, the risk of a US recession is rising. On Friday, the release of the March jobs report will shed light on the health of the US economy before Trump’s big tariff push took hold. Nonfarm payrolls are expected to show a rise of 140,000 when the reading is released at 8:30 a.m. ET.
Also ahead is a conference speech by Federal Reserve Chair Powell on Friday morning, with a focus on what his comments signal about the economy and tariffs. Traders have ramped up bets on interest rate cuts this year to four, as the Fed is expected to set its efforts to cool inflation aside to tackle the bigger risk of economic slowdown.
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European stocks extend losses as global tariff sell-off continues
European stocks continued slumping Friday as a widespread global sell-off over growing recession fears and escalating trade wars kicked up a notch.
The pan-European Stoxx 600 (^STOXX) and Germany’s DAX (^GDAXI) both fell 4.7%. Meanwhile, the CAC (^FCHI) in Paris dropped 4.2%. In London, the benchmark index (^FTSE) was down 3.8%.
European Commission President Ursula von der Leyen said the European Union was preparing a package of countermeasures against the US if trade talks fail. On Thursday, French President Emmanuel Macron also indicated the Europe would hit back, calling for European companies to suspend planned investment in the United States. And the UK indicated it planned to take a tougher stance on trade as well.
European stocks are headed for their biggest weekly loss in three years. However, US stocks fared worse on Thursday as investors grappled with President Trump’s sweeping reciprocal tariff plan (see chart below).
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Oil tanks 8%, extends losses after China announces retaliatory tariffs on US
Oil sank to multi-year low levels on Friday after China announced retaliatory tariffs against the US in response to President Trump’s recent sweeping levies.
West Texas Intermediate (CL=F), the US benchmark sank as much as 8% to hover near $61 per barrel, while Brent (BZ=F) declined more than 7% to below $65 per barrel. The last time Brent and WTI traded around these levels was in 2021.
Oil extended losses from the prior session when it settled more than 6% lower amid fears of deteriodemand after Trump’s retaliatory tariffs against US partners were announced on Wednesday. Subsequently, OPEC+ decision to increase production output next month more than expected also sent futures lower.
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Stock losses accelerate
Wall Street appears headed for another ugly day as China offered a first retaliatory volley in response to President Trump’s tariffs.
Dow futures are down over 1,400 points, and Nasdaq and S&P 500 futures are both off over 3.5%.
CME – Delayed Quote USD
As of 8:13:11 AM EDT. Market Open.
ES=F NQ=F YM=F
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10-year Treasury yield falls below 4% after China hits back
The yield on the 10-year Treasury (^TNX) fell below 4% on Friday morning as investors flocked to bonds amid trade-war and recession fears.
The benchmark yield fell as much as 15 basis points to 3.88%, the lowest level since President Trump took office. The move came after China announced retaliatory tariffs on US imports in reaction to Trump’s sweeping reciprocal tariffs earlier this week.
Fears of a global slowdown or recession gripped investors after Trump set steeper-than-expected tariffs on US trading partners, sending the stock market into a tailspin.
Trump’s announcement on Wednesday brought levies against Chinese made imports to 54%. Analysts believe those levies will impact a variety of goods, including clothing, toys, and electronics.
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Good morning. Here’s what’s happening today.
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GameStop wobbles after Cohen’s share buy
GameStop (GME) initially jumped over 3% in premarket Friday after CEO Ryan Cohen bought 500,000 more shares, but has since slipped almost % as trading unfolds.
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Japan bank shares plunge in response to tariff destabilization
Reuters reports:
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Oil plunges as Trump tariffs lead to worst week in months
Oil prices declined in early Friday trading in Asia, on track for their worst week in months, as President Trump’s new tariffs fueled fears of a global trade conflict that could dampen oil demand.
Reuters reports:
