Trade Tensions Trigger Market Turmoil: U.S. Stocks Dive Amid New Tariffs

U.S. stock index futures plunged as China imposed additional tariffs on U.S. goods, escalating the ongoing trade war. Financial markets were jolted, with tech stocks like JD.com, Alibaba, and Baidu seeing significant declines. Fears of a potential recession intensified as traders anticipated rate cuts from central banks.

U.S. stock index futures took a sharp nosedive Friday following China's announcement of additional tariffs on all U.S. goods, in retaliation to President Trump's recent sweeping levies. The decision by China's finance ministry has exacerbated an already tense global trade war, leading to a significant market selloff.

The new tariffs, set at 34%, are slated to take effect on April 10, sending stocks into a tailspin. Major premarket declines were observed in Chinese U.S.-listed companies such as JD.com, Alibaba, and Baidu. The Nasdaq 100, Dow, and S&P 500 all reported substantial losses.

Amid mounting fears of a recession, focus shifted to the Federal Reserve's potential rate policy, with traders expecting a 100 basis point cut by year's end. Labor market data and Fed Chair Powell's upcoming speech are anticipated to further influence market movements.

(With inputs from agencies.)