U.S. Stock Market Summary for Thursday, April 10, 2025



Major Indices

  • S&P 500: ▼3.46% to 5,268.05

  • Dow Jones Industrial Average: ▼2.50% to 39,593.66

  • Nasdaq 100: ▼4.19% to 18,343.57

  • Russell 2000: ▼4.27% to 1,831.39

Market Overview

U.S. equities tumbled on Thursday, giving back a significant portion of Wednesday's historic gains. The downturn was driven by escalating U.S.-China trade tensions after the White House announced a sharp increase in tariffs on Chinese imports—from 125% to 145%—prompting retaliatory rhetoric from Beijing. Despite a softer-than-expected inflation report, the intensifying trade war overshadowed economic data and reignited investor anxiety.

The selloff came just a day after President Trump temporarily suspended some tariffs for 90 days, a move that had sparked a market rally. However, investors quickly recalibrated as fears resurfaced over prolonged economic disruption from global trade disputes.

Sector Highlights

  • Technology: Led the decline as the Nasdaq sank over 4%, reflecting sharp losses across major tech firms amid renewed global uncertainty.

  • Energy: Fell in tandem with oil prices, which dropped more than 3%, pressuring shares of oil producers and energy services companies.

  • Financials: Slipped as investors took a cautious stance ahead of key earnings from major banks.

Economic Snapshot

March’s Consumer Price Index (CPI) report pointed to cooling inflation:

  • Core CPI rose just 0.1% MoM, below the 0.3% consensus estimate.

While lower inflation could provide room for future rate cuts, declines in discretionary service prices—such as lodging and airfare—suggest a possible softening in consumer demand, raising concerns over economic momentum.

Expert Commentary

  • Michael Bailey, FBB Capital: “Investors are waking up to the reality that the U.S.-China trade war may get worse before it gets better.”

  • Paul Nolte, Murphy & Sylvest: “Markets remain uneasy because the endgame in this trade conflict is still unclear.”

  • Nicholas Uddin, Gavekal Research: “Trump’s trade policy has evolved from a broad-based battle to a focused confrontation with China—one Beijing sees as a sign of American weakness.”

  • Brett Kenwell, eToro: “Disinflation driven by a slowdown in economic activity is not the ideal path to rate cuts.”

Government & Political Notes

President Trump acknowledged in a cabinet meeting that tariffs could cause transitional disruptions but maintained confidence in his strategy. He hinted at progress on trade negotiations without naming specific countries and left open the possibility of extending the 90-day tariff suspension.

Meanwhile, the European Union postponed its retaliatory tariffs in response to the U.S. pause, signaling a potential opening for trade talks.

Conclusion

Thursday's steep decline reflects investor jitters over intensifying geopolitical risks despite favorable inflation data. With volatility on the rise, market participants are adopting a more defensive stance. Attention now turns to upcoming earnings reports, developments in U.S.-China negotiations, and further economic indicators for cues on future market direction.

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