1. China strikes back: US stock futures moved sharply lower on Wednesday after Beijing announced plans for heavy new tariffs on dozens more US goods. The Chinese Ministry of Commerce said it plans to impose a 25% tariff on $50 billion worth of US exports, including aircraft, soybeans and autos. It didn't state when the tariffs would go into effect.
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| Where U.S. stocks are heading | | Dow
Futures | | Nasdaq
Futures | | S&P
Futures | | -587.00 | | -156.75 | | -50.25 | | -2.45% | | -2.42% | | -1.92% | | | |
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| | | Japan | | China | | U.K. | | Nikkei 225 | | Shanghai Composite | | FTSE 100 | | +27.26 | | -5.52 | | -40.48 | | 21,319.55 | | 3,131.11 | | 6,989.98 | | +0.13% | | -0.18% | | -0.58% | | | |
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| | | Biggest Losers | | Boeing Co | -5.99% | | | | Cboe Global Markets Inc | -5.87% | | | | NVIDIA Corp | -4.81% | | | | Estee Lauder Companies Inc | -4.57% | | | | | | | |
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| News: What you need to know about the markets | | | | | | | China strikes back; Futures drop; Sorrell under pressure | By Ivana Kottasová
Wednesday, April 4th, 5:45am | | | | 1. China strikes back: US stock futures moved sharply lower on Wednesday after Beijing announced plans for heavy new tariffs on dozens more US goods. | | | | The Chinese Ministry of Commerce said it plans to impose a 25% tariff on $50 billion worth of US exports, including aircraft, soybeans and autos. It didn't state when the tariffs would go into effect. | | | | Market reaction to the retaliatory measures was swift. Dow, Nasdaq and S&P 500 futures were off by 1.5% or more. Shares in General Motors, Boeing, Ford were sharply lower premarket. The price of soybeans tanked. | | | | Hong Kong's Hang Seng, which had been up in morning trade, closed 2.2% lower. European markets registered losses in the range of 1%. | | | | China's announcement comes less than 24 hours after the Trump administration published a list of about 1,300 Chinese exports that it plans to target with tariffs. Key areas of focus include China's aerospace and manufacturing industries. | | | | "What the United States has done is in total ignorance of the essence of the mutually beneficial and win-win cooperation in trade between China and the United States," Gao Feng, a spokesperson for China's ministry of commerce, told state TV on Wednesday. | | | | Investors are worried about a potential trade war between the world's two largest economies. | | | | The VIX volatility index spiked 9% early on Wednesday. US oil futures dropped 1% to trade at $62.90 per barrel. Gold, seen as a safe haven by investors, gained 0.8%. | | | | WATCH: 'Markets Now' live with Richard Quest from NYSE at 12:45 p.m. ET | | | | 2. Sorrell in the spotlight: Shares in WPP dropped as much as 3% in early trade after the advertising giant said it has hired an outside counsel to investigate allegations of personal misconduct against chief executive Martin Sorrell. | | | | The company, which owns 400 agencies including Ogilvy & Mather and JWT, said "the allegations do not involve amounts which are material to WPP." | | | | The Wall Street Journal has reported that the board is investigating whether Sorrell "misused company assets." Sorrell responded in a statement: "I reject the allegation unreservedly but recognize that the company has to investigate it." | | | | 3. Spotify debut: The streaming music service is now worth nearly $30 billion after an unusual IPO. | | | | Spotify opened at $165.90 a share on the New York Stock Exchange on Tuesday, well above the $132 it reached when traded on private markets. The stock later fell below $150 a share. | | | | Unlike traditional IPOs, Spotify did not raise new capital. Instead it simply listed existing shares directly on the stock exchange without relying on underwriters. | | | | Analysts said that if Spotify can avoid too many wild swings in the coming days, its alternative public listing process could entice other big name companies to follow suit. | | | | 4. Tuesday market recap: The Dow jumped 1.7% on Tuesday, while the S&P 500 was up 1.3% and the Nasdaq gained 1%. | | | | Before the Bell newsletter: Key market news. In your inbox. Subscribe now! | | | | 5. Economics: Crude inventories data will be released at 10:30 a.m. ET. | | | | An employment report by ADP, a payroll processor, is expected at 8:15 a.m. ET. The data will give investors a glimpse at what to expect from the March jobs report on Friday. | | | | Eurozone inflation data will be released at 5:00 a.m. ET. | | | | Markets Now newsletter: Get a global markets snapshot in your inbox every afternoon. Sign up now! | | | | | | | |
| | | | | | Wednesday — ADP National Employment Report
Thursday — February trade deficit report
Friday — Jobs report | | | | | | | |
| Key Market Stats | Latest | Today's Change | | | Oil | $62.31 | -1.20 / -1.89% | | | Gold | $1,348.30 | +11.00 / +0.82% | | | 10-yr | 2.78% | 0.00 / 0.00% | | | Euro | $1.23 | +0.00 / +0.01% | | | |
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