US Futures Drop as Mood Shifts to Trade War Damage: Markets Wrap

Sujata Rao and Margaryta Kirakosian

Thu, Apr 10, 2025, 4:42 AM 4 min read

(Bloomberg) -- Wall Street’s burst of euphoria flipped backmost to unease, with a descent successful US banal futures, lipid and the dollar pointing to interest that the commercialized warfare volition bring lasting harm to the American economy.

S&P 500 futures sank 1.5%, indicating a pullback from Wednesday’s astir 10% surge. The dollar fell for a 3rd day. Bonds precocious and investors looked for information successful gold, the Swiss franc and yen. Brent crude sank beneath $64 a barrel.

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While President Donald Trump’s determination to intermission immoderate tariffs drove the US stocks to a historical one-day rally, the absorption among traders is shifting to the interaction of an economical downturn and prolonged volatility. Consumer ostentation information is owed aboriginal today, and a Treasury auction of 30-year bonds volition beryllium a intimately watched for immoderate signs of nervousness astir owning US debt.

“The harm has been done. They’ve opened Pandora’s container and they can’t undo what’s been done successful 1 statement,” said Colin Graham, caput of multi-asset strategies astatine Robeco Groep. “We would decidedly beryllium a spot much of a seller astatine this point.”

Other strategists echoed that view. Citigroup Inc. advisers are saying “don’t pursuit this, don’t bargain the dip,” the bank’s planetary wealthiness caput Andy Sieg said successful a interrogation connected Bloomberg Television. Jefferies strategist Mohit Kumar advised allocating distant from US markets, and Tiffany Wilding, an economist astatine Pacific Investment Management Co., enactment the likelihood of a recession astatine 50-50, adjacent if the tariff reprieve is extended.

Companies astir the satellite person already started hitting their ain intermission fastener connected orders, and the upcoming net play is expected to amusement galore firms slashing their guidance for the year. JPMorgan Chase & Co, Morgan Stanley and BlackRock Inc. footwear disconnected the tally of first-quarter reports connected Friday.

Meanwhile arsenic Trump escalates his commercialized warfare with China, interest is increasing that the world’s 2 largest economies are starting to decouple, arsenic their respective exports to each different look prohibitive duties.

“We could again beryllium seeing escalation and de-escalation astatine the aforesaid time, pulling markets successful antithetic directions,” wrote Philip Marey, elder US strategist astatine Rabobank. “Policy uncertainty is apt to stay a resistance connected concern investment, portion investors whitethorn beryllium seeing US Treasuries successful a antithetic airy now.”

China’s apical leaders person planned to conscionable connected Thursday to sermon further stimulus, and Beijing is besides letting its currency weaken to offset the unit connected the economy. The onshore yuan dropped to levels past seen successful 2007 against the dollar connected Thursday, earlier paring the move.