The major U.S. index futures are currently pointing to a sharply lower open on Wednesday, with stocks likely to see continued weakness following the substantial downturn seen over the course of the previous session.
Ongoing concerns about the impact of a global trade war are likely to weigh on Wall Street after President Donald Trump's new tariffs, including a 104 percent total levy on Chinese imports, took effect.
China retaliated by announcing it will increase its tariffs on U.S. goods to 84 percent from 34 percent just after midnight on Thursday.
"China urges the US to immediately correct its wrong practices, cancel all unilateral tariff measures against China, and properly resolve differences with China through equal dialogue on the basis of mutual respect," China's finance ministry said in a statement, according to a Google translation.
However, Treasury Secretary Scott Bessent claimed in an interview with Fox Business that China doesn't actually want to negotiate and called the country "the worst offenders in the international trading system."
"They have the most imbalanced economy in the history of the modern world, and I can tell you that this escalation is a loser for them," Bessent said.
JPMorgan Chase (JPM) CEO Jamie Dimon said in a separate interview with Fox Business that a recession is the "likely outcome" of the tariff turmoil.
"Investors are looking for any indication that the US government might blink in the face of the turmoil. For now, there are no signs of a willingness to back down or hit pause on tariffs," said AJ Bell investment director Russ Mould. "The longer the situation persists, the harder and more complex it will be to unpick."
Stocks moved sharply higher early in the session on Tuesday but showed a substantial downturn over the course of the trading day. The major averages pulled back well off their highs of the session and tumbled firmly into negative territory.
The major averages climbed off their worst levels going into the close but still posted significant losses on the day. The Nasdaq plunged 335.35 points or 2.2 percent to 15,267.91, the S&P 500 slumped 79.48 points or 1.6 percent to 4,982.77 and the Dow slid 320.01 points or 0.8 percent to 37,645.59.
Earlier in the day, the Dow had jumped by nearly 3.9 percent, while the S&P 500 and Nasdaq had both surged more than 4 percent.
With the downturn on the day extending the recent nosedive, the Dow and the Nasdaq dropped to their lowest closing levels in over a year and the S&P 500 hit a nearly one-year closing low.
The early rally on Wall Street partly reflected optimism about negotiations on President Donald Trump's new tariffs that could help avoid a global trade war.
Treasury Secretary Scott Bessent said approximately 70 countries have approached the White House about trade talks, with Japan purportedly getting priority status.
"I think you are going to see some very large countries with large trade deficits come forward very quickly," Bessent said during an interview on CNBC. "If they come to the table with solid proposals, I think we can end up with some good deals."
Trump also said in a post on Truth Social that he had a "great call" with South Korea's acting President Han Duck-soo and said the country's "top TEAM is on a plane heading to the U.S., and things are looking good."
Traders also looked to pick up stocks at reduced levels following the recent nosedive, which saw the major averages hit their lowest intraday levels in over a year on Monday before regaining ground.
Buying waned over the course of the session, however, as tensions over tariffs continue to rise between the U.S. and China.
China has vowed to "fight to the end" after Trump threatened to impose an additional 50 percent tariff on Chinese goods unless the country withdraws its new 34 percent tariff on U.S. goods.
Oil service stocks came under considerable selling pressure over the course of the session, dragging the Philadelphia Oil Service Index down by 5.0 percent to its lowest closing level in over three years.
The sell-off by oil service stocks came as the price of crude oil pulled back sharply after rebounding earlier in the day, tumbling to its lowest levels in four years.
Substantial weakness also emerged among airline stocks, with the NYSE Arca Airline Index plummeting by 4.0 percent to a four-year closing low.
Biotechnology stocks also showed a significant move to the downside, as reflected by the 3.9 percent slump by the NYSE Arca Biotechnology Index.
Computer hardware, semiconductor, oil producer and housing stocks also moved notably lower amid another day of broad based weakness on Wall Street.
Commodity, Currency Markets
Crude oil futures are plunging $3.48 to $56.10 a barrel after slumping $1.12 to $59.58 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $3,069.20, up $79 compared to the previous session's close of $2,990.20. On Tuesday, gold climbed $16.60.
On the currency front, the U.S. dollar is trading at 144.02 yen compared to the 146.27 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.1093 compared to yesterday's $1.0958.
Asia
Asian stocks resumed losses on Wednesday as U.S. President Donald Trump pressed ahead with sweeping new global tariffs, including over 100 percent in levies against Chinese goods.
Gold prices regained strength as the dollar weakened on fears of a potential U.S. recession.
The Treasury yield curve steepened, with the two-year note outperforming longer-dated debt amid speculation that the Federal Reserve may need to speed up rate cuts.
China's yuan hit a record low, while the Japanese yen and Swiss franc attracted safe haven buying.
Oil prices extended a brutal sell-off to reach their lowest in more than four years on looming demand concerns fueled by the tariff war between the U.S. and China.
China's Shanghai Composite Index jumped 1.3 percent to 3,186.81 as Trump's 104 percent duties on Chinese imports kicked in and Beijing vowed to take resolute and effective measures to safeguard its rights and interests. Hong Kong's Hang Seng Index ended 0.7 percent higher at 20,264.49.
Japanese markets tumbled in a broad sell-off as Trump's "reciprocal" tariffs on dozens of countries took effect. The Nikkei 225 Index plunged 3.9 percent to close at 31,714.03, while the broader Topix Index settled 3.4 percent lower at 2,349.33.
Tech stocks suffered heavy losses, with SoftBank Group, Advantest and Tokyo Electron plummeting 6-8 percent.
Seoul stocks fell sharply, with the Kospi slumping 1.7 percent to close below the 2,300 mark for the first time in 18 months.
Australian markets joined a global sell-off, with energy and resource stocks pacing the declines. The benchmark S&P/ASX 200 Index dove 1.8 percent to 7,375, while the broader All Ordinaries Index closed down 1.9 percent at 7,561.70.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index dropped 0.7 percent to 11,806.55 as the country's central bank cut its benchmark rate, as widely expected, and signaled a greater readiness to lower borrowing costs further.
Europe
European shares have moved sharply lower on Wednesday as U.S. President Donald Trump pushed ahead with higher duties on roughly 60 trading partners that he dubbed the "worst offenders."
The latest set of U.S. tariffs, including a massive 104 percent levy on Chinese imports, take effect today, escalating a trade war that has rattled global markets.
Trump also proposed the imposition of a "major" tariff on drug imports in a bid to stimulate domestic drug production and tripled the previously announced tariff rates on low-value packages exported to the U.S. from mainland China and Hong Kong.
The German DAX Index is down by 4.3 percent, the French CAC 40 Index is down by 4.2 percent and the U.K.'s FTSE 100 Index is down by 3.7 percent.
Commodity-related stocks are under selling pressure, with Anglo American, BP Plc and Shell posting steep losses.
Oxford Biomedica shares have also slumped. The gene and cell therapy company issued a more cautious outlook on EBITDA after narrowing its net loss in fiscal 2024.
PageGroup shares have also fallen. The recruiter opted not to provide financial guidance against an increasingly unpredictable market backdrop.
Meanwhile, Assura has soared after the medical property owner agreed to a 1.61-billion-pound takeover bid from KKR and Stonepeak Partners.
U.S. Economic News
The Commerce Department is scheduled to release its report on wholesale inventories in the month of February at 10 am ET. Wholesale inventories are expected to rise by 0.3 percent in February, unchanged from the preliminary estimate.
At 10:30 am ET, the Energy Information Administration is due to release its report on oil inventories in the week ended April 5th. Crude oil inventories are expected to increase by 2.2 million barrels after surging by 6.2 million barrels in the previous week.
Richmond Federal Reserve President Thomas Barkin is scheduled to participate in a conversation with the Economic Club of Washington at 12:30 pm ET.
At 1 pm ET, the Treasury Department is due to announce the results of this month's auction of $39 billion worth of ten-year notes.
The Federal Reserve is scheduled to release the minutes of its March monetary policy meeting at 2 pm ET. At the meeting, the Fed decided to once again leave interest rates unchanged.
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April 11, 2025 14:54 ET Some key economic data were released during the week though the focus remained on the escalation of the global tariff war. Inflation data and minutes of the latest Fed policy session were the main news out of the U.S. In Europe, trade data from Germany was among the key reports released. In Asia, consumer price data from China gained attention, while India’s central bank was in focus as it announced the latest interest rate decision.