US pre-open: Futures lower as Trump's tariffs come into effect

9th Apr 2025 11:35

(Sharecast News) - Wall Street futures were in the red ahead of the bell on Wednesday as Donald Trump's tit-for-tat tariff war with China continued to escalate.

As of 1215 BST, Dow Jones futures were down 1.84%, while S&P 500 and Nasdaq-100 futures had the indices opening 1.62% and 1.30% weaker, respectively.

The Dow closed 320.01 points lower on Tuesday as traders braced for the White House's 104% tariff on Chinese imports to take effect at midnight, along with levies on 85 other nations.

Futures took a further hit after China imposed an 84% tariff on US goods in response, while Canada also confirmed plans to put into effect 25% retaliatory tariffs on US-made vehicles. Since Trump announced his so-called 'Liberation Day' tariffs after the close on 2 April, the blue-chip Dow Jones has shed more than 4,500 points, while the S&P 500 and Nasdaq Composite were 12% and 13% lower, respectively.

Also of note, the yield on the benchmark 10-year Treasury note surged 12 basis points to 4.374% after starting the week at roughly 4%, raising alarm among investors as they attempt to navigate the global trade quagmire.

On the macro front, mortgage applications surged 20% in the week ended 4 April, according to the Mortgage Bankers Association of America, more than erasing the three consecutive weekly declines preceding it. Applications to purchase a home were up 9%, while those to refinance a mortgage shot up 35%.

Still to come, February wholesale inventories data was slated for release at 1500 BST, while minutes from the Federal Reserve Open Markets Committee's latest meeting will be published at 1900 BST.

Reporting by Iain Gilbert at Sharecast.com