China calls for dialogue as US trade tensions escalate; Wall Street Futures rebound

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Posted by NewAdmin on 2025-04-09 08:36:05 |

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Wall Street Futures saw a sharp recovery from earlier lows on April 9 after China extended an olive branch by urging dialogue with the United States to resolve escalating trade tensions. This development came in response to a volatile day in global markets, triggered by a new round of retaliatory tariffs between the two economic superpowers. The United States recently announced a massive 104 percent tariff on Chinese imports following China's 34 percent retaliatory tariff on US goods, itself a response to an earlier move by former US President Donald Trump to impose reciprocal taxes on multiple countries, including China.

Despite a steep drop of nearly 2 percent in the early hours, US stock futures rebounded as sentiment improved following the release of a White Paper by China's government. According to China’s state-run agency Xinhua, the White Paper stressed that while China had taken “forceful” countermeasures to protect its national interests, it remained committed to settling differences through dialogue and mutual consultation. The document described trade frictions between the US and China as “natural,” given the scale and complexity of the bilateral relationship, but emphasized the need for constructive engagement.

This gesture of diplomacy led to a partial reversal in market losses. At around 1:15 pm IST, S&P Futures were up by 0.1 percent, while Dow Jones Futures rose by 0.02 percent, recovering over 900 points from their session lows. The Nasdaq Futures, which are heavily weighted with technology stocks, led the rebound with a gain of 0.41 percent, trading at 17,318.75 after recovering over 500 points.

The backdrop to this volatility has been a wave of market uncertainty in the US, with benchmark indices seeing large swings in recent sessions. On April 8, despite strong intraday gains of nearly 4 percent, the markets reversed direction to close significantly lower. The Nasdaq dropped more than 2 percent to end at 15,267.91, while the S&P 500 fell below the psychologically important 5,000 level for the first time in nearly a year. These developments underscore the fragile investor sentiment and heightened sensitivity to global geopolitical and economic tensions.

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