- U.S.-China trade tensions escalate with higher tariffs, sparking fears of slower global growth
- Stock markets plunge as S&P 500 drops 4.35%, Nasdaq down 4.24%, Russell 2000 falls 4.14%
- U.S. Treasury Bond Futures decline 0.74%, signaling investor uncertainty over tariffs and rate cuts
The cryptocurrency market went back into the red zone after new developments on the ongoing trade dispute between the two largest economies in the world continued to affect investors’ confidence in the financial sector.
Today, on April 10, the market reacted negatively to new trade restrictions, particularly between China and the U.S., raising fears of slower global growth.
Whereas yesterday marked one of the most positive days in crypto this year, while simultaneously pumping the stock market back into the winning column — today the markets closed lower once again.
Despite hopes that yesterday’s rally would hold, today’s market downturn was widespread. The S&P 500 ($SPY) dropped 4.35%, while the Nasdaq lost 4.24% as investors reassessed the economic impact of escalating trade tensions. The Russell 2000 ($IWM) slipped 4.14%, signaling weakness in small-cap stocks, while the Dow Jones Industrial Average ($DIA) shed 2.52%.
As for crypto, while the market started off the day on a high note pumped by a positive CPI reading this Thursday — digital assets turned once again bullish over the day. Currently, Bitcoin trades at a 3.49% daily deficit. Ethereum and XRP also lost value by up to 7.54% over the last 24 hours according to CoinMarketCap.
Despite Trump’s 90-day delay of his new tariff policy on international trade, investors are now coming to the realization that the scenario is still far from bullish. China, simultaneously the U.S.’s largest trading partner and also biggest rival, was not included in the truce from import taxes.
In fact, America further raised tariffs on Chinese imports, as high as 145%. In response, China announced a new 84% tax on American goods entering the nation.
Amidst this economic chaos. U.S. Treasury Bond Futures fell 0.74% today, reflecting investor concerns over tariff uncertainty and shifting rate cut expectations. If bond futures fall, it usually means investors expect higher interest rates or are feeling uncertain about the economy.
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