Wall Street futures reversed early gains and resumed sharp losses midday Friday after the White House clarified that total U.S. tariffs on Chinese goods have now climbed to 145%, not 125% as previously stated. The market, already volatile amid escalating trade tensions, reacted swiftly to the announcement with the Dow Jones Industrial Average futures plunging 670 points from day high, while the Nasdaq and S&P 500 futures dropped nearly 230 points and 80 points from day high respectively.
Earlier in the day, Dow futures had swung nearly 1,100 points—recovering from a 500-point drop to a 430-point gain—before slipping back into the red as China hit back and reaffirmed its position through an official Commerce Ministry statement: “If the US insists on continuing to substantially infringe upon China’s rights and interests, China will resolutely counterattack and fight to the end.”
Asian stocks ended the week with losses, and the dollar extended its three-day plunge, marking its worst decline in three years. The euro jumped 1.6% and gold hit a new record high of $3,212/oz as global investors flocked to safe havens. US Treasury yields also fell as demand for bonds rebounded sharply in the face of escalating uncertainty.
The White House also confirmed that 15 countries have shown interest in securing individual trade agreements, but President Trump warned that “higher tariffs will return” if no deals are finalized within the 90-day pause period currently extended to non-retaliating nations.
Markets are now bracing for key U.S. economic data releases later in the day, including Producer Price Index inflation figures and consumer sentiment updates, which could further shape expectations on Federal Reserve policy and risk sentiment.
