U.S. stocks experienced a pullback on April 10, 2025, after a significant surge the previous day, as investors remained cautious about the ongoing global trade war. The S&P 500 decreased by 2.3%, following a 9.5% gain triggered by President Trump's tariff pause. The Dow Jones Industrial Average fell 1.7%, equivalent to 700 points, and the Nasdaq composite declined by 2.7%.
Despite a better-than-expected inflation report, U.S. stocks could not sustain their upward trajectory. Economists cautioned that the inflation data reflected past conditions and might not account for future tariff-related increases. China is reportedly seeking alliances to counter Trump's trade policies, while the European Union is temporarily suspending retaliatory measures for 90 days to allow for negotiations.
UBS strategist Bhanu Baweja noted that even with reduced tariffs, the U.S. economy could still face significant impacts on corporate profits. The 10-year Treasury yield stabilized at 4.31% after a spike earlier in the week. Overseas markets initially responded positively to Trump's tariff pause, with Japan's Nikkei 225 soaring by 9.1%, South Korea's Kospi jumping 6.6%, and Germany's DAX increasing by 5.6%.
However, it's important to note that the Indian stock exchanges, BSE and NSE, were closed on April 10, 2025, for Mahavir Jayanti. The market's volatility persists due to uncertainty surrounding trade policies and geopolitical tensions. Investors are closely monitoring these developments for potential global economic repercussions.