US Market Prediction: Wall Street has continued to bleed for the fourth consecutive trading session. Major indices like Dow Jones, S&P 500, and Nasdaq Composite have slipped by 10% to 11.5% in five sessions as tariff tantrums continue to threaten global recession. The latest midcrop moment is Trump's 104% tariff slapped on China after the latter retaliated. However, the latest news states that China is mulling talking about resolving tariff and trade concerns with the USA.
US Stocks Futures:
In the early trade of Wednesday, Dow Jones Futures is down by nearly 1%, while S&P 500 futures shed about 0.5%. Surprisingly, Nasdaq Composite futures are trading mildly down.
The stock futures signal a bearish start for the US market when they open on April 9.
Dr VK Vijayakumar, Chief Investment Strategist, at Geojit Investments said, "With a whopping 104% tariffs on China likely to kick in today, "there is blood on the streets." Uncertainty reigns supreme. How global trade and the global economy evolve from this chaos remains to be seen. The market downturns will provide opportunities for brave investors with a long-term time horizon."
Meanwhile, as per Trading Economics, the US stock futures declined Wednesday as President Donald Trump's sweeping tariffs came into effect from midnight of April 9, including a 104% levy on Chinese imports. Markets now view the two economic powers as entrenched in a full-scale trade war.
Equities had initially rallied on hopes for progress in global tariff negotiations but reversed course after Trump confirmed the tariffs would proceed as planned. The White House described the measures as "non-negotiable," citing national security concerns. Meanwhile, China pledged to "fight to the end" in the growing trade conflict. Despite reports that over 70 countries, including Japan and South Korea, expressed willingness to negotiate, the lack of concrete developments weighed on investor sentiment. Looking ahead, investors await the release of the Fed's latest minutes for new signals on the direction of interest rates, as per Trading Economics.
Trump-China Trade War Tensions:
During his Liberation Day on April 2, Trump announced a host of reciprocal tariffs on countries globally, with China facing a tariff of 34%.
However, the tensions escalated between the two countries when China retaliated with its own 34% tariffs on US products. Trump retorted back and threatened to impose a 50% additional tariff if China does not take its retaliatory tariff back. However, the White House press secretary confirmed that the US has gone ahead and imposed an 84% tariff on Chinese goods, which came into effect from 12:01 am on April 9th. Fresh tariffs are imposed on 60 other countries.
The 34% plus 50% tariff that totalled 84% tariff will be an add-on to the already imposed 20% tariff on Chinese products.
As per the latest report, in a bid to de-escalate trade conflict with the United States, China on Wednesday expressed willingness to 'resolve disputes through dialogue and consultation' with America.
Trump through his Truth Social account said, "I'm proud to be the President for the workers, not the outsourcers; the President who stands up for Main Street, not Wall Street; who protects the middle class, not the political class; and who defends America, not trade cheaters all over the globe."
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