DOW JONES: SAFE HAVENS CRUMBLE as China Retaliates – US 30 Faces Rebalancing Test

Dow Futures Plunge 900+ Points As Trade War ERUPTS

Daily E-Mini Dow Jones Industrial Average Dow Futures have plunged 906 Points (2.4%) in Pre-Market Trading as China AnnounCed retaliator Tariffs of 84% on Us Goods Effective April 10. S & P 500 and NasdaC. Respectively, Extending A Four-Day Market Rout that have erassed $ 5.83 trillion in S&P 500 Market Value.

China Slaps 84% ​​Tariffs As Global Retaliation Spreads The Chinese Government’s Response Follows US Tariffs of 104% on Chinese Imports that took Effect Overnight. Market Sentiment Deteriorated Further after Scott Bessentnt FOX Business that China Is Unwilling to Negotate, Calling Them “The Worst Offenders in the International Trading System.”

Trade Conflicts have Expanded Beyond China, With Canada Confirming 25% Retaliatoria Tariffs on US-Made Vehicles, Special Targeting Those Notiants. Piper Sandler Analyst Andy Laperriere Nes that Tariffs Will Likely Remain “at the Highest Levels of Our Lifetimes.”

Treasury Yields Spike Despite Recession Fears – SAFE HAVENS CRUMBLE

Daily US GOVERNMENT BONDS 10-YEAR YIELD The 10-Year Treasury Yield Has Spiked 19 Basis Points to 4.45%, Reaching ITS HIGHEEST LEVEL SINCE FEBRUARY DESPITE Growing Recession Fears. The 30-year yield Briefly Touched 5.02% overnight, A Level Not Seen Since November. This Unusual Bond Market Action-Yields Rising Dringing Equity Market Stress-CONTRADICS OF THE TYPical SAFE-HAVEN BEHAVIOR OF FIXED INCOME assets.

Bond Market Weakness May Indicate Foreign Holders Potentally Selling US GOVERNMENT DEBT. Today’s $ 39 Billion 10-Year Treasury Auction Will Be Closely Watched Following Tuesday’s Weak Demand for 3-YEAR Notes. Japan, China, and The UK – Countriers Targeted with High Tariffs –are Among the Largest Treasury Holders.

Bear Market Looms As Vix Explodes to 57

Daily Valativity S&P 500 Index The S&P 500 is Now Down 19% from it Record High, Approaching Bear Market Territory. The CBOE VALATY INDEX (VIX) HAS SURGED TO 57.31, Near ITS HIGHEEST SINCE AUGUST, REFLECTING EXTREME INVISTOR ANXIETY.

Traders Are Now Prting in More than 100 Basis Points of Fed Rate Cuts by December, Equivalent to Four 25-Basis-Point Reducitions. However, The Fed Faces A Policy Dilemma As Global Tariffs Could Raise Inflation Even As Recession Risks Grow. Today’s Release of Fed Meeting Minutes and Tomorrow’s CPI Data Will Be Critical in Determining Near-Term Market Direction.

Trading Strategies Amid Heigheted Valativity Sector Rotation Has Intensified with Defensive Stocks Showing Relative Outperformance. Utilitites and Consumer Stapples have Decklined Less The Broader Market, While Technology and Financial Sectors Bear the Brunt of Selling Pressure.

Options Traders Report Surging Demand for Downside Protection, with Put-Call Ratios Reaching Levels Not Seen Since 2022.

Liquidity have deteriorated in Both Equity and Bond Markets, with Bid -Ask Spreads Widening Significantly Across Asset Classes.

More Information in Our Economic Calendar.