President Donald Trump’s reciprocal tariffs on nearly 100 countries took effect today, April 9, creating a havoc in global stock markets. Asian equity markets and U.S. futures are declining, while bonds are witnessing a massive sell-off. Futures tied to the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) are down between 1.57% and 1.47%, as of the last check.
Meanwhile, Japan’s Nikkei index dropped 3.9%, and Australia’s ASX 200 index fell by 1.8%, as Trump plans to impose major tariffs on pharmaceuticals, mainly targeting Australian companies. Additionally, long term Treasury yields are flying higher, up 4.47% at the time of writing, as frenzied investors sell even the safest assets.
The sweeping tariffs announced on April 2 are as high as 50% for some countries. Notably, China remains at the center of the escalating tariff war, with Trump signing an executive order imposing an additional 50% tariffs on China. This brings the total tariffs on Chinese imports to a staggering 104%.
U.S. stocks closed lower on Tuesday, April 8, following a volatile session not seen in decades, as the White House hinted at the possibility of potential trade deals, pushing shares higher during intraday trading. The SPX, DJIA, and NDX ended down 1.57%, 0.84%, and 2.15%, respectively. The SPX reached an intraday high of over 4%, while the Nasdaq also hit a record intraday high as investors rushed to buy the dip in major technology stocks.