Global Market Turmoil: U.S. Tariffs Shake Wall Street

U.S. stock index futures saw instability following President Trump's implementation of reciprocal tariffs, intensifying fears of global economic damage. With major U.S. indices declining, the market value of the S&P 500 significantly dropped. Diverging reactions were seen, as U.S.-listed Chinese stocks experienced gains.

On Wednesday, U.S. stock index futures faced hurdles after substantial losses in the previous session, triggered by President Donald Trump's reciprocal tariffs taking effect. This action has heightened concerns over its detrimental impact on the global economy.

The tariffs, which include a staggering 104% duty on Chinese goods, resulted in investors rapidly pulling out from stocks and industrial commodities as hopes for concessions diminished. Although prospects of tariff deals had initially boosted U.S. equities, these gains were short-lived, with major indices closing down.

Despite the general market decline, U.S.-listed shares of Chinese firms, such as Alibaba and PDD Holdings, recorded gains. Meanwhile, bond yields rose amid increasing recession fears, fueling expectations of Federal Reserve interest rate cuts. The 10-year note yield spiked, reflecting market anticipation of policy adjustments.

(With inputs from agencies.)