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US stock futures sank on Thursday, pulling back after the major indexes staged a historic rally as President Trump paused many of his largest tariff hikes on trading partners.
S&P 500 futures (ES=F) retreated 1.9%, while those on the tech-heavy Nasdaq 100 (NQ=F) tumbled 2.4%. Dow Jones Industrial Average futures (YM=F) fell 1.4%.
Wall Street is weighing Trump’s remarkable escalation in the US trade battle with China, after he raised levies on those imports to a whopping 125%. And other parts of his trade-policy overhaul remain in effect, including a 10% baseline tariff on most trading partners, 25% duties on steel and aluminum imports, and 25% duties on auto imports.
CME – Delayed Quote USD
As of 5:12:59 AM EDT. Market Open.
ES=F YM=F NQ=F
Those elements could still lead to consequences economists have warned about, including rising prices and slower economic growth. Investors on Thursday will get a snapshot of a largely pre-tariff inflation picture with the release of March’s Consumer Price Index.
On Wednesday, markets breathed a loud, collective sigh of relief after Trump said the US was suspending most “reciprocal” tariffs on other countries for 90 days. Trump nodded to “yippy” stock and bond markets as a factor in his decision-making, even as the 10-year Treasury yield (^TNX) remained higher around 4.4% after his announcement.
Read more: Live updates on Trump tariffs fallout
Stocks notched one of their biggest one-day rallies since World War II on the heels of the move. The benchmark S&P 500 (^GSPC) had its best day since 2008, gaining 9.5%. The Dow (^DJI) rallied nearly 3,000 points. The Nasdaq Composite (^IXIC) posted its second-best day on record.
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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:
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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
