Market Reacts to China's Tariff Hike

In a bold move that escalates trade tensions, China has announced an increase in tariffs on US imports, raising them from 84% to 125%. This decision comes shortly after the US implemented its own set of trade measures under President Donald Trump's administration.

Impact on US Stock Futures

The immediate reaction in the financial markets was negative, with US stock futures experiencing a drop. By 4:35 am ET, the Dow Jones had lost 135 points, equivalent to a 0.34% decrease, while the Nasdaq 100 and the S&P 500 fell by 0.43% and 0.36%, respectively.

Currency Markets Response

Meanwhile, in the currency markets, the euro saw a significant rise against the dollar, increasing by 1.89% to $1.14106 by 4:36 am ET.