Trade War Tensions Rattle U.S. Stock Futures

U.S. stock index futures declined as China escalated the trade war by raising tariffs on American imports to 125%. This move follows President Trump's increase in tariffs on China to 145%, despite a temporary tariff respite for other nations. The market remains volatile but poised for weekly gains.

U.S. stock index futures fell on Friday following China's decision to raise tariffs on American imports to 125%, amplifying a trade war that threatens to disrupt global trade and potentially trigger an economic downturn.

This move by China comes on the heels of U.S. President Donald Trump's Thursday announcement, when he increased tariffs on China to 145%, while simultaneously offering a 90-day tariff reprieve to most other trading partners. Stock markets have reacted unpredictably, with Wall Street experiencing a roller-coaster of losses and gains, including the S&P 500's largest one-day percentage surge since October 2008.

Although stocks slumped again on Thursday and remain more than 7% lower than pre-market-rout levels, the indexes are set to end the week with strong gains. The Nasdaq is on track for its best weekly performance of the year so far. As of 04:32 a.m. ET, Dow E-minis dipped 108 points, S&P 500 E-minis dropped 14.75 points, and Nasdaq 100 E-minis fell 54 points. Major growth stocks were down in premarket trading, with Tesla notably declining by 1.9%. Big banks, including JPMorgan Chase & Co, Morgan Stanley, Wells Fargo & Co, and asset manager BlackRock, are expected to report earnings later today.

(With inputs from agencies.)