Stocks rise amid tariff retaliation from China, Europe, and Japan

From Nasdaq: 2025-04-09 13:10:00

Stock indexes are up today as US reciprocal tariffs take effect, sparking a crisis of confidence in the dollar. The S&P 500, Dow Jones, and Nasdaq are all showing gains. Tariffs on China have led to stagflation concerns, pushing bond yields higher. China, Europe, and Japan have retaliated with tariffs as well.

Stocks rebounded midday on tech strength and Delta Air Lines earnings. Treasury Secretary Mnuchin’s trade deal optimism and Trump’s market confidence boosting remarks also supported markets. US escalated China tariffs by 50%, prompting immediate retaliation. EU also imposed tariffs on US goods. Market awaits FOMC minutes, CPI, PPI, and earnings season.

US MBA mortgage applications spiked 20%, with rates dropping to a 5-1/2 month low. Tariffs have spooked markets, with Trump imposing tariffs on Canada, Mexico, China, and autos. Odds of a Fed rate cut post-FOMC meeting are at 47%. Attention on US trade policies and economic data this week, with Q1 earnings season starting Friday.

Overseas markets mixed, with Euro Stoxx down sharply, Shanghai Composite and Nikkei closing in opposite directions. Interest rates and bond yields fluctuate due to trade tensions. ECB members hint at rate cuts. Stock movers include tech stocks, chip makers, airlines, pharmaceuticals, homebuilders, and energy producers. Gold mining stocks and Walmart among the gainers. Cal-Maine Foods disappoints with Q3 EPS miss. Earnings reports scheduled for 4/9/2025.



Read more at Nasdaq: Stocks Search for Direction as China, Europe Retaliate on Tariffs