U.S. Shares Seesaw in Unstable Session as International Commerce Conflict Intensifies
April 9, 2025 – New York, NY – U.S. inventory markets endured a rollercoaster journey on Tuesday, April 8, as traders grappled with the deepening fallout from President Donald Trump’s escalating world commerce conflict. The S&P 500 (SPY), a key benchmark for U.S. equities, closed the day at 496.546 USD, down barely from its earlier shut of 496.48 USD, after swinging wildly between positive aspects and losses. The Dow Jones Industrial Common plunged over 1,000 factors at its morning low earlier than clawing again to a modest 0.13% achieve, whereas the Nasdaq surged 1.5% by day’s finish, buoyed by tech resilience regardless of early promoting strain.
The volatility, which noticed the SPY dip to a session low of 485.622 USD earlier than rallying to a excessive of 500.905 USD, displays mounting uncertainty over Trump’s tariff blitz. On April 2, dubbed “Liberation Day,” Trump unveiled a ten% baseline tariff on all imports, with steeper charges like 31% on Switzerland and 104% on China, triggering a cascade of retaliatory levies worldwide. China’s 84% duties on U.S. items, Canada’s focused 25% auto tariffs, and Switzerland’s diplomatic pushback have fueled fears of a recession, wiping trillions off world markets in days. The Cboe Volatility Index (VIX) spiked to 46.98—its highest since April 2020—capturing Wall Avenue’s jittery temper.
Tuesday’s session flipped early losses into positive aspects after Treasury Secretary Scott Bessent hinted at “good offers” in tariff talks with allies like Japan, sparking hopes of de-escalation. “The market’s on a hair set off, latching onto any whiff of negotiation,” stated Jamie Cox of Harris Monetary Group. But, Trump doubled down, warning of a possible 50% hike on Chinese language items until Beijing backs off, dashing optimism as shares wobbled into the shut. Posts on X mirrored the chaos, with customers noting SPY’s 4% intraday swing and speculating on Federal Reserve price cuts—now priced at 5 quarter-point reductions in 2025—as a buffer towards tariff-driven inflation.
The SPY’s year-to-date drop from a February peak of 594.18 USD underscores the commerce conflict’s toll, with a 1-month slide from 576.00 USD on March 25 signaling a broader correction. Mega-cap tech shares like Apple (-3.7%) and Tesla (-2.6%) dragged early buying and selling, although Tesla trimmed losses after experiences of Elon Musk’s Mar-a-Lago tariff summit with Trump. In the meantime, Japan’s Nikkei 225 and Europe’s STOXX 600 nursed steep losses—7% and 4.5%, respectively—highlighting the worldwide contagion.
Economists warn of stagflation dangers as tariffs carry prices whereas slowing progress, a view echoed by JPMorgan CEO Jamie Dimon’s recession forecast. But, Trump’s camp stays defiant, with commerce adviser Peter Navarro calling the selloff a “Magazine 7” tech situation, not a coverage flaw. Because the SPY teeters close to its year-low of 481.8 USD, Wednesday’s reciprocal tariff deadline looms—one other take a look at for a market caught between panic and fragile hope.
By Satish mehra, Markets Correspondent
