Market Reacts to China's Tariff Hike

In a bold move that escalates trade tensions, China announced a significant increase in tariffs on US imports, from 84% to 125%. This decision comes shortly after US President Donald Trump's implementation of sweeping trade measures, sending shockwaves through the markets.

Impact on US Stock Futures

By 4:35 am ET, the Dow Jones had lost 135 points, a 0.34% drop, while the Nasdaq 100 and the S&P 500 fell by 0.43% and 0.36% respectively. The markets' reaction underscores the growing concerns over a potential trade war between the two economic giants.

Currency Markets Response

Meanwhile, in currency markets, the euro saw a notable increase against the dollar, rising by 1.89% to $1.14106 by 4:36 am ET, highlighting the broader financial implications of the trade dispute.