S&P 500 Futures Plunge 3.5% After Trump Imposes Fresh China Tariffs
S&P 500 futures plummeted 3.5% on April 11, 2025, following new trade tensions between the U.S. and China. The Trump administration imposed fresh tariffs of 145% on Chinese imports, with China retaliating with 125% duties on American goods.
The market reaction was swift and severe:
- S&P 500 futures down 3.5%
- Significant drops in Nasdaq and Dow futures
- Tech stocks particularly affected (Nvidia, Tesla, Meta)
- Gold futures surged above $3,230 per ounce
- U.S. dollar index fell below 100
- 10-year Treasury yield saw its largest weekly jump since 2001
The selloff reflects growing concerns about:
- Disrupted global supply chains
- Potential impact on corporate earnings
- Rising inflation pressures
- Lack of scheduled high-level diplomatic talks
- Possible additional Chinese restrictions on U.S. businesses
Market sectors responded differently:
- Defense and energy stocks showed some resilience
- Utilities and defensive stocks gained favor
- High-growth and cyclical stocks faced selling pressure
- Safe-haven assets like gold and Treasuries rallied
Without signs of de-escalation or renewed negotiations, markets remain vulnerable to further volatility. Investors are increasingly adopting defensive positions, prioritizing capital preservation over growth opportunities.
The combination of trade tensions, fragile economic recovery, and uncertain corporate earnings outlook suggests continued market pressure in the near term. Financial advisors recommend caution and defensive positioning until there's clear evidence of diplomatic progress between the two economic powers.