11.04.202515:28 Forex Analysis & Reviews: US Market News Digest for April 11

US stock indices plunge after recent gains despite Trump's tariff pause

After Wednesday's explosive rally triggered by President Donald Trump's announcement of a 90-day tariff pause, US markets on Thursday decided the party was premature. Major indices tumbled: the Dow dropped 2.5%, the Nasdaq fell 4.3%, and the S&P 500 declined 3.5%, closing the session at 5,268. The volatility range remained dramatic — from 4,800 to 5,800. Markets opened on a somber note and, despite mid-session recovery attempts, closed deep in the red. At its worst, the Nasdaq was down 7.2% and the Russell 2000 shed 6.5%, before the panic eased slightly by the bell.

What triggered such a dramatic reversal? A sobering realization that the US economy is not out of the woods yet. Yes, tariffs have been paused, but the baseline 10% tariff remains intact, and China continues to face a staggering 145% rate. Cautious investors used Wednesday's bounce as a chance to sell at a higher price and shield portfolios from looming volatility. The Federal Reserve, based on officials' comments, appears in no rush to rescue the market with interest rate cuts — inflation remains the spoiler. Adding fuel to the fire, CarMax disappointed on earnings, crashing 19.5% (KMX 66.43, -15.62), the US federal budget is straining at the seams again, and the House of Representatives seems tuned out entirely. Follow the link for details.

US stocks sink as trade war escalates: S&P 500 down 3.46%, Nasdaq 4.31%

US equity indices engaged in a game of "who can fall harder": the S&P 500 dropped 3.46%, the Nasdaq 100 plunged 4.31%, while the Dow Jones slipped a relatively modest 2.50%. Meanwhile, the US dollar extended weakness following its steepest collapse in three years. Both stocks and bonds were dumped in tandem, and the mood across markets could be summed up in one word — panic. What is the reason? The trade war with China is back in full swing, and investors, to put it mildly, are not impressed.

Asia is faring no better: regional indices are on track for a third consecutive week of declines. The trigger is the White House deciding that 25% tariffs were not enough, opting instead to go straight for 145%. US Treasuries have been tumbling for a week now, as if constantly reminded of global instability. The euro jumped 1.6%, while the Swiss franc soared to a ten-year high. As the cherry on this economic layer cake, gold hit a fresh record, reminding everyone that shiny things shine brightest when everything else is falling apart. President Trump's decision to delay tariffs for 90 days failed to convince investors, prompting a collective groan of "here we go again." The erratic zigzags of tariff policy have deeply eroded trust in the United States. Follow the link for details.

Markets in turmoil amid uncertainty over trade war with China

In 2025, the role of chief antagonist for global markets unexpectedly shifted from the Federal Reserve to the White House. Donald Trump continues his game of trade chess with the world, declaring that "winning a war is easy." Yet the market's response tells a different story: the S&P 500 plunged 3.5% after it was clarified that tariffs on Chinese imports would not be 125% but 145%. The announcement of a 90-day pause, however, sparked euphoria: the index surged 9.5%, reinforcing the view from Wall Street that the real threat to the global economy is not inflation or a recession—it is a trade war emanating from Washington.

The US administration proudly reports that 70 countries are open to negotiations, with 15 having already submitted proposals. However, as the Wall Street Journal whispers, most of those "proposals" resemble pleas to lift the tariffs. Meanwhile, Trump dreams of rewriting trade agreements with a hundred countries at once. Considering the last round took months—or even years—market optimism is quickly giving way to skepticism. Volatility is hitting record highs, confidence in US policy is cracking, and rumors are swirling across the market that the US may actually need a recession to force a reset. Follow the link for details.

Investor jitters deepen on Trump's tariff moves, USD weakens

On Thursday, US markets staged a nervous performance: the S&P 500 plunged 3.46%, the Nasdaq fell 4.31%, and the Dow Jones shed 1,014.79 points. All this followed Donald Trump's overnight announcement of a new round in the trade war with China. The brief reprieve gave way to hardened rhetoric, and investors, who just a day earlier were hoping for a truce, fled the battlefield en masse. The S&P 500 is now 7.1% below its level before the tariff announcements, while the MSCI global index is down 0.77%. Panic? More like heightened anxiety.

As equities shed weight at breakneck speed, gold rallied nearly 3%, hitting a new all-time high. The dollar, meanwhile, pulled a disappearing act, falling to its lowest level in a decade against the Swiss franc. Treasury bonds helped calm nerves somewhat: a strong auction restored some faith in stability, at least temporarily. Next up: earnings reports from major banks, including JPMorgan Chase. One can only hope they will not be the next "surprise" of the week.

Stocks poised to end week on high note, but US-China trade tensions threaten market reversal

Wall Street wraps the week with applause: the S&P 500 surged 3.8%, marking its best gain since November, the Dow Jones added 3.3%, and the Nasdaq soared 5.1%. It might seem like a cause for celebration. However, investors tend to be a jittery crowd: futures slipped 0.6% on Friday. After all, China unexpectedly hardened its tone raising tariffs on US goods to 125% in response to Washington's 145%. The trade war is clearly in full swing. Against this backdrop, riskier assets have started to lose appeal, and the upcoming corporate earnings season looms large.

Technically, the picture is not flawless either. After a brief pause around 5,380/5,360, the S&P 500 broke below 5,345 and confidently hit targets at 5,280/5,275 and even 5,220/5,200. However, the index made a sudden rebound from the strong support zone of 5,155/5,135. For now, it is holding, despite an attempt to climb back toward 5,360/5,380. But the bullish run is limited. In short, the market may look upbeat, but the warning bells are ringing and there is no guarantee they signal a potential upside move.