Wall Street Indexes Extend Losses as U.S.-China Trade War Intensifies

Barry Adams
09 Apr, 2025
New York City

Wall Street indexes resumed their slide and extended five-day losses after Trump's import tax kicked in and China announced its retaliatory tariffs.

The S&P 500 index dropped 2%, and the tech-heavy Nasdaq Composite declined 2.9% after China said it would continue to take "resolute and forceful" measures.

Anxiety over the deepening trade war between the world's two largest economies rattled investors on Wall Street and around the world. 

U.S. tariffs on imports from other countries also took effect amid uncertainty about the U.S. trade policy outlook and its impact on economic growth and inflation. 

While on the campaign trail, Donald Trump repeatedly assured voters about his plans to lower prices, increase the wealth of citizens, and end the war in Ukraine on the first day in office. 

Instead, consumer prices are rebounding sharply with the largest gains in automobile prices and electronics and home goods and food products. Investors have seen losses of 20% in their stock holdings, and Russia has grabbed more territory in Ukraine. 

Moreover, Trump repeatedly reminded investors that President Biden should be impeached or forced out if the Dow Jones Industrial Average falls more than 1,000 points.

The benchmark index has now lost more than 4,500 points over the last four days and is still searching for lower levels. 

 

Commodities, Currencies, Indexes, Yields

The S&P 500 index increased 0.7% to 5,014.95, the Nasdaq Composite edged up 1.6% to 15,482.13, and the Russell 2000 index was down 1.05% to 1,745.51.

The yield on 2-year Treasury notes edged higher to 3.78%, 10-year Treasury notes increased to 4.41%, and 30-year Treasury bonds advanced to 4.92%.

WTI crude oil decreased $2.57 to $57.01 a barrel, and natural gas prices edged lower by $0.03 to $3.44 a thermal unit.

Gold increased by $79.75 to 3,058.10 an ounce, and silver edged up by $0.82 to $30.42.

The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.87 to 102.08 and traded at a two-year high.

 

U.S. Movers

Walmart Inc. declined 2.5% to $81.20 after the big-box retailer withdrew its first quarter earnings estimate, citing tariff uncertainty. 

Target Corp. dropped 2.5% to $86.50 and dropped to a new one-year low amid tariff uncertainty and worries linked to resurgent inflation. 

RH dropped 3% to $145.10, Abercrombie & Fitch declined 2.5% to $65.33, Gap Inc. decreased 3.5% to $17.04, lululemon fell 2.4% to $242.05, and Amazon.com fell 1.8% to $167.67.

Costco Wholesale Corp. decreased 1.6% to $894.12, and Best Buy declined 3.3% to $54.30.

Electronic hardware companies led the decliners after China announced its retaliatory tariff of 84%. 

Apple Inc. dropped 1.7% to 169.48, Nvidia added 0.7% to 96.35, AMD fell 1.5% to $77.14, and Micron Technology fell 1.9% to $64.30.