Traders work on the floor of the American New York Stock Exchange at the New York Stock Exchange on April 10, 2025 in New York City, USA.
Gina Moon | Reuters
Stock futures fell on Tuesday, resuming a sell-off seen late last week as concerns about U.S.-China trade relations continued to grow.
Dow Jones Industrial Average Futures Lost 356 points (0.8%). S&P500 futures 1.2% reduction, Nasdaq 100 futures It fell 1.6%.
AI stocks, which have been driving the bull market, led the selling, but they were also the biggest losers in Friday’s selloff. Nvidia and AMD each fell more than 2%. Tesla and Oracle fell about 3%.
The decline came after China and the United States began imposing additional port fees on each other’s cargo ships, escalating ongoing trade tensions between the world’s largest economies. In addition, China has imposed sanctions on five U.S. subsidiaries of South Korea’s Hanwha Ocean.
Tuesday’s decline undone the market’s big rally on Monday after President Donald Trump appeared to ease concerns about U.S.-China trade tensions.
The S&P 500 and Dow each rose more than 1% on the day, marking the Dow’s biggest single-day gain since May 27. The market-wide index also regained more than half of Friday’s plunge. The Dow had its best day since Sept. 11, snapping a five-day losing streak and recouping two-thirds of Friday’s losses.
“Don’t worry about China, everything will be fine,” Trump said in a post on Truth Social on Sunday.
“Trade policy remains a key driver for U.S. financial markets this year, and last week saw a sharp re-escalation of U.S.-China tensions,” Ulrike Hoffman Burchardi, global head of equities at UBS Global Wealth Management, said in a note. “We expect stock market volatility to increase towards the end of the month as both sides harden their positions. However, the history of negotiations between President Trump and President Xi shows that escalations have often been followed by tactical cease-fires, with the possibility of an eventual agreement on prices for rare earth minerals and shipping fees.”
Tuesday’s move came despite the release of mostly solid quarterly results. J&J, JPMorgan Chase & Co. and Wells Fargo all reported profits that beat analysts’ expectations.
