China's Retaliatory Tariff Hike Escalates Trade War, Gold Soars, Dollar Hits Two-Year Low - Global Markets Today While US Slept

On Thursday, April 10, U.S. markets closed lower as renewed fears over President Trump’s escalating trade war with China erased much of the previous day’s historic rally.

The S&P 500 and Nasdaq had surged following a 90-day tariff reprieve, but investor uncertainty quickly returned. Meanwhile, inflation eased in March, nearing the Fed’s 2% target, though the central bank’s path forward remains uncertain amid ongoing trade tensions with both China and Europe.

In economic data, Consumer inflation slowed to 2.4% year-over-year, down from 2.8% in February and below expectations of 2.6%—marking the lowest reading since September 2024. On a monthly basis, the Consumer Price Index fell 0.1%, the first decline since May 2020.

Most S&P 500 sectors ended lower, led by sharp losses in energy, technology, and communication services. However, consumer staples outperformed, closing in positive territory.

The Dow Jones Industrial Average dropped 2.50% to 39,593.66, the S&P 500 fell 3.46% to 5,268.05, and the Nasdaq Composite declined 4.31% to close at 16,387.31.

Related: Xi Jinping Says ‘There Are No Winners In Tariff War’ As China Slaps 125% Tariffs On US Goods, Urges Trump To Immediately Correct ‘Wrongdoings’

Asia Markets Today

• On Friday, Japan’s Nikkei 225 fell 2.96% to close at 33,584.50, led by losses in the Paper & Pulp, Transport and Communication sectors.
• Australia’s S&P/ASX 200 was down 0.82% and closed at 7,646.50, led by losses in the Healthcare, Utilities and Energy sectors.
• India’s Nifty 50 was up 1.89% at 22,822.35, and Nifty 500 rose 1.94% at 20,749.50.
• China’s Shanghai Composite rose 0.45% to 3,238.23, and Shanghai Shenzhen CSI 300 increased 0.41% to 3,750.52.
• Hong Kong’s Hang Seng Index gained 1.26% to 20,943.00.
• China raised tariffs on U.S. goods to 125%, escalating its trade war with Washington after Trump’s 145% hike. Beijing condemned the move as unilateral bullying.

Eurozone at 05:45 AM ET

• The European STOXX 50 was down 1.23%.
• Germany’s DAX declined 1.68%.
• France’s CAC 40 fell 0.96%.
• U.K.’s FTSE 100 index traded lower by 0.16%.

Commodities at 05:45 AM ET

• Crude Oil WTI was trading higher by 0.27% at $60.23/bbl, and Brent was up 0.19% at $63.46/bbl.
• Natural Gas fell 0.65% to $3.691.
• Gold was trading higher by 2.00% at $3,241.60, Silver was up 2.01% to $31.380, and Copper rose 2.62% to $4.4500.
• Gold recorded a new high as mining stocks continued their post-inauguration rally amid escalating U.S.-China trade tensions.

U.S. Futures at 05:45 AM ET

• Dow futures were down 0.17%, S&P 500 futures declined 0.06%, and Nasdaq 100 futures rose 0.39%.
• U.S. stock futures fell as China hiked tariffs to 125%, escalating trade tensions. Markets fear global recession, with investors rattled by supply chain risks and economic fallout from the intensifying conflict.

Forex at 05:45 AM ET

• The U.S. Dollar Index declined 1.60% to 99.23, USD/JPY was down 1.51% to 142.32, and USD/AUD slid 1.20% to 1.6050.
• The U.S. dollar sank to a near two-year low as trade tensions escalated and confidence in U.S. assets eroded. Investors flocked to the euro, Swiss franc, and British pound instead.

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