Markets retreat after historic rally amid lingering US-China trade tensions

US stocks tumbled on April 10, retreating from a historic rally in the previous session, as investors reacted to concerns that President Donald Trump’s tariff reprieve may not be enough to offset the impact of elevated duties on Chinese imports.

The Dow Jones Industrial Average dropped 1,109 points, or 2.8 per cent, while the S&P 500 lost 3.3 per cent. The tech-heavy Nasdaq Composite fell 4 per cent, with major tech stocks leading the losses. Apple and Tesla fell more than 2 per cent and 5 per cent, respectively, while Nvidia declined 3.6 per cent and Meta Platforms slipped 3.8 per cent, Caliber.Az reports per foreign media.

The sell-off followed Trump’s announcement of a 90-day pause on additional tariffs for most countries, which initially sparked a historic surge on Wall Street. The S&P 500 had soared over 9 per cent on April 9—its third-largest one-day gain since World War II. The Dow posted its biggest percentage advance since March 2020, and the Nasdaq recorded its second-best day on record.

Despite the optimism, April 10 trading reflected lingering investor anxiety over the steep tariffs still in place. The White House confirmed that China now faces a cumulative 145 per cent duty on its exports to the US, including a new 125 per cent tariff announced this week and an existing 20 per cent tariff introduced in response to the fentanyl crisis.

Other tariffs remain unchanged: a 25 per cent duty on aluminum, autos, and non-USMCA goods from Canada and Mexico, and a 10 per cent levy on all other imports.

“I thought that people were jumping a little bit out of line,” Trump said in an interview. “They were getting yippy, you know, they were getting a little bit yippy, a little bit afraid.”

While the temporary tariff reduction brought brief relief, analysts cautioned that uncertainty remains high.

The S&P 500 remains down more than 6 per cent since the tariffs were first announced on April 2.

By Vafa Guliyeva