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The US stock market futures market is witnessing a spectacular recovery from the lower levels today. There is a big reason behind this recovery in US futures. In fact, China's state news agency Xinhua has said in its report quoting sources that China has appealed to the US for talks regarding the recent tariff. Earlier, the global markets have been witnessing huge fluctuations since the announcement of reciprocal tariff.
The US has once again imposed a 104% tariff on China after China's retaliatory 34% tariff a day earlier.
What happened in the market?
US market futures were down by about 2% at the beginning of the day. But, by afternoon the situation improved and the losses were reduced. By 12:50 pm (Indian time), S&P futures were down by 0.6%, while Dow Jones futures were down by 0.46%. Nasdaq futures based on tech companies were trading 0.32% down at 17,168.50. Let us tell you that the US markets open at 7 pm according to Indian time.
Appeal for talks from China Xinhua released a report on April 9. It cited the Chinese government's white paper, which stated its stand on the ongoing trade tension with the US. According to the white paper, China has taken "strong" steps to protect its interests. But it is ready to resolve the dispute with the US through talks and consultations. The report also said that it is "natural" to have trade differences between the two countries. How did this dispute start? On April 2, US President Donald Trump announced new tariffs on several countries. In response, China immediately imposed a 34 percent duty on US imports. Then the US took a more stringent step and imposed a massive tariff of 104 percent on goods coming from China. This growing trade war created panic in markets around the world. Investors fear that this tension between the US and China could lead to a recession. Impact on global markets Due to this trade tension, global stock markets saw a huge decline. Investors are constantly worried that if this war escalates further, it could have a bad effect on the economy of the whole world. But China's appeal for talks gave some relief to the market. The improvement in Wall Street futures is an indication that investors hope that both countries can move towards a mutual agreement. What will happen next? Now everyone's eyes are on whether the US and China will really come to the negotiating table. If this happens, the markets may stabilize. But if this tension continues to increase, it may affect not only these two countries but also the economy of other countries like India. For now, China's offer of negotiation has given some hope to investors, due to which Wall Street is seeing improvement.
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