April 4 – U.S. stock futures plunged on Friday morning, signaling further turbulence in the markets after China hit back with steep tariffs on American products. The retaliatory move deepened trade tensions and added fuel to concerns about a broader economic downturn.
The Chinese Ministry of Finance revealed that starting April 10, all U.S. goods would face an extra 34% import tax. This announcement came in direct response to the Trump administration’s decision just a day earlier to implement the most sweeping tariff increases in over 100 years—setting off alarm bells throughout global financial circles.
The response from investors was immediate. Equity futures for the Nasdaq 100 were down more than 3%, confirming a 20% fall from recent highs and signaling a possible bear market. Dow futures dropped by nearly 3%, and the S&P 500 (.SPX) futures also slid sharply, reflecting growing panic over the escalating trade conflict.
The pressure was especially heavy on Chinese firms listed in the U.S., with tech giants like JD.com, Alibaba, and Baidu seeing steep premarket losses—falling 7.5%, 8.7%, and 6.7%, respectively.
On Thursday, the S&P 500 had already suffered a brutal 4.8% drop, the largest single-day decline since mid-2020. The index closed at 5,396.52, a level not seen in over seven months. The Nasdaq, dominated by tech companies, saw an even more dramatic 6% plunge, its worst day since the peak of COVID-related volatility in early 2020. Meanwhile, the Dow shed 2.5%, teetering on the edge of an official correction, defined as a 10% pullback from record highs.
Technology and multinational corporations took the hardest hit due to their exposure to global supply chains. Shares of Apple were down nearly 5%, while Nvidia lost close to 4%, and Amazon fell by more than 5%.
The ripple effects extended beyond tech. Major U.S. banks also saw a steep decline. Bank of America, JPMorgan Chase, and Citigroup each dropped around 5% as fears of a slowing economy and potential rate cuts took hold. The 10-year U.S. Treasury yield fell to 3.95%, its lowest in six months, as investors moved toward safer assets.
Traders are now bracing for more volatility, with growing expectations that the Federal Reserve might have to shift its monetary stance to cushion the blow. Fed Chair Jerome Powell is scheduled to speak later today, and markets are eager for hints on future rate decisions. Money markets are now pricing in rate cuts totaling 100 basis points by year-end—up from 75 basis points projected just a week ago.
The uncertainty isn’t limited to financial markets. Economists are eyeing today’s U.S. jobs report for signs of weakening labor conditions. Early forecasts suggest that nonfarm payrolls grew by just 135,000 in March—down from February’s 151,000—as budget cuts and hiring freezes begin to take their toll. Many federal agencies have started laying off workers in an effort to curb spending, and private employers are showing reluctance to expand staffing amid rising import costs and waning consumer confidence.
What’s becoming increasingly clear is that the global trade landscape is shifting rapidly, and not for the better. The tit-for-tat nature of recent tariff announcements has disrupted supply chains, increased operating costs, and clouded the outlook for corporate earnings.
Market experts warn that unless tensions ease soon, these policy moves could trigger a deeper economic pullback. “We’re seeing clear signs of retaliation from global trading partners,” said Ben Laidler, Chief Equity Strategist at Bradesco BBI. “The danger now is that we’re not just flirting with a slowdown—we’re risking a full-blown recession.”
With market sentiment deteriorating and volatility at its highest since August 2024, investors are advised to stay alert and reassess risk exposure as events unfold. The global economy now stands at a critical crossroads, and what happens next will likely be shaped by both political decisions and monetary responses in the days ahead.