US stocks calm after volatile day, trade war tensions persist, market uncertainty remains

From Yahoo Finance: 2025-04-08 07:09:00

Equity markets calmed after a tumultuous Monday, but trade war tensions remain high as China refuses to back down on tariffs. The U.S. dollar weakened while the euro strengthened amid hopes for negotiations. The European Commission offered a tariff deal to prevent a trade war with the U.S. Gold prices surged, reminiscent of 1980 turmoil.

Stock futures rebounded after a rough week, with Japan’s Nikkei rallying 6% on trade negotiation hopes. China holds firm on retaliatory tariffs, prompting Trump to threaten increased import levies. Beijing vows to fight U.S. “blackmail” as the yuan weakens. Speculation rises on China’s use of U.S. debt as leverage.

Treasuries recoiled on Monday, with yields erasing post-tariff announcement declines. Market volatility raises concerns about hedge fund exposure to Treasury trades. The war of words between Trump and Powell adds uncertainty. High volatility in junk bond pricing may tighten financing conditions. Corporate earnings and economic data to watch.



Read more at Yahoo Finance: Stocks take a breath, but yuan, Treasuries convulse