The S&P 500 futures dropped 87 points, a change of 1.8%. Nasdaq 100 futures fell by 255 points, showing a 1.5% decline. Dow Jones Industrial Average futures are down 632 points, representing a 1.7% decrease.
The stock market faces more fallout due to tariffs after China's announcement of an 84% tariff on U.S. imports, in response to a 104% levy from the U.S. on Chinese imports.
The Treasury market selloff is also affecting early equity trading negatively. Rising yields over past sessions are causing concerns about ongoing inflation pressures and a potential global slowdown from trade policies.
The 10-year yield increased by 18 basis points to 4.89%, while the 2-year yield rose five basis points to 3.79%. Longer-term yields are seeing more selling ahead of today's $39 billion 10-year note auction at 1:00 p.m. ET.
FOMC Minutes from the March 18-19 meeting will be released at 2:00 p.m. ET, with no major surprises expected.
JPMorgan Chase's (JPM, Financial) CEO, Jamie Dimon, addressed the current market turmoil, suggesting that the ongoing tariff issues are not comparable to the 2008 financial crisis. He emphasized the need for progress in trade deals to stabilize the market, acknowledging that such agreements take time. Dimon highlighted the importance of strengthening trade relationships with Europe to counteract China's and Russia's influence, noting that slower economic growth is expected, though defaults have not yet increased significantly.
In a significant escalation of trade tensions, China announced a tariff increase to 84% on U.S. goods in response to the U.S.'s 104% tariffs on Chinese imports. This move, effective April 10, has been criticized by China as a violation of its rights and a threat to global economic stability. The increased tariffs have led to volatility in stock index futures, reflecting the market's reaction to the escalating trade war.
Google (GOOGL) introduced its latest AI chip, the Ironwood TPU, designed to enhance inference capabilities. Available in two configurations, the chip aims to boost AI model processing in data centers, aligning with the growing demand for AI infrastructure. Google's focus on custom chips highlights its commitment to advancing AI technology and meeting the needs of cloud customers.
The Trump administration revoked special licenses for BP (BP, Financial) and Shell (SHEL, Financial) concerning natural gas projects in Venezuela, impacting Trinidad and Tobago's economy. This decision aligns with U.S. efforts to isolate Venezuela and follows similar actions against other companies. The revocation affects projects critical to Trinidad's LNG exports, valued at $3.6 billion.
Peabody Energy (BTU, Financial) is reconsidering its agreement to acquire Anglo American's coal operations after a fire at an Australian mine. The incident has prompted Peabody to review its options while maintaining discussions with Anglo American to assess the impact. The deal, involving a substantial upfront payment and potential additional considerations, remains under negotiation.
A federal judge dismissed a class action against Bristol Myers Squibb (BMY, Financial), which accused the company of maintaining a monopoly over its multiple myeloma treatment, Pomalyst. The court ruled that the plaintiffs failed to prove violations of antitrust laws, allowing Bristol Myers to continue its operations without legal hindrance.
President Trump announced plans for a significant tariff on pharmaceutical imports, aiming to encourage drug manufacturing within the U.S. This announcement has affected major European drugmakers' shares, with companies like AstraZeneca (AZN, Financial) and Sanofi (SNY, Financial) experiencing declines. The move is part of broader trade policies reshaping the pharmaceutical landscape.
Apple (AAPL, Financial) shares continued to decline as China increased tariffs on U.S. goods. The tech giant's reliance on Chinese manufacturing has made it vulnerable to the ongoing trade conflict, contributing to its recent market struggles. Apple's position as the most valuable company was overtaken by Microsoft (MSFT, Financial), which remains more insulated from these macroeconomic pressures.
Walmart (WMT, Financial) maintained its sales growth guidance despite the tariff-related uncertainties. The company plans to navigate the challenging environment by focusing on strategic investments and maintaining operational flexibility. Walmart's leadership emphasized its history of emerging stronger from economic uncertainties, aiming to continue creating shareholder value.
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