Nasdaq Futures Rebound Over 500 Points as Beijing Appeals for Calm in Face of Escalating Tariff War
In a significant diplomatic overture amid mounting economic tensions, China has urged the United States to resolve trade disputes through dialogue and consultation, signaling a potential de-escalation in the trade standoff that has rattled global financial markets. The call for negotiations was issued via a White Paper published by China’s official news agency Xinhua on April 9, just hours after Wall Street Futures rebounded sharply from steep intraday losses.
The recovery came after a turbulent morning session that saw US index Futures drop nearly 2 percent, reflecting investor panic over the rapidly escalating tariff war. At around 1:15 pm IST, S&P Futures were up 0.1 percent, Dow Jones Futures rose 0.02 percent, and the Nasdaq Futures jumped 0.41 percent, regaining over 500 points to trade at $17,318.75.
China appeals for negotiation in Xinhua White Paper
US Futures erase sharp losses; Nasdaq up over 500 points
Global markets find temporary relief after intense volatility
White Paper Signals Diplomatic Tone as China Calls US Tariffs “Unreasonable”
In the White Paper, Beijing outlined its position on the trade dispute, asserting that while it has taken “forceful” measures to defend its national interest—including retaliatory tariffs—it remains committed to peace through bilateral dialogue. The document acknowledged that “frictions are natural” between large economies like the US and China, but emphasized that escalating trade conflict would benefit neither side and could jeopardize global economic recovery.
The report follows a sharp retaliatory cycle, where the US, under President Donald Trump, imposed a 104 percent tariff on Chinese imports, prompting Beijing to announce a 34 percent tariff on American goods in response to earlier reciprocal tariffs.
China calls recent US tariffs ‘unjustified and protectionist’
Emphasizes mutual respect and dialogue to resolve frictions
Reiterates commitment to global trade norms despite retaliation
Markets Roiled by Escalating Tariff Battle as Recession Fears Resurface
The abrupt tariff escalation has triggered a broad global sell-off, with emerging market indices and commodity currencies bearing the brunt of investor anxiety. On April 9, mid- and small-cap indices in India plunged up to 2 percent, while similar volatility was observed in European and Asian markets. The imposition of the 104 percent US tariff marks one of the harshest trade measures enacted in recent years, reminiscent of the initial stages of the 2018–2019 trade war.
Financial experts warn that the current situation could reignite fears of a global slowdown, especially if further retaliatory action follows. The initial tariff cycle already caused temporary demand destruction in key sectors such as semiconductors, electronics, and industrial commodities.
Global equities sharply corrected following tariff announcements
Indian small- and mid-cap stocks down up to 2 percent
Risk-off sentiment returns across global asset classes
Hope Rises for De-Escalation as Markets Await US Response
Despite the escalating tariff spiral, China’s latest tone offers a potential path to resolution, which could restore investor confidence if reciprocated by the US. Analysts believe that any sign of the Biden administration (or Trump-led policy team, depending on the political cycle) responding constructively could lead to a sharp short-term rally in equities, particularly in the tech and industrial sectors, which have been the most sensitive to trade developments.
The Nasdaq’s robust rebound on April 9 highlights the market’s sensitivity to diplomatic cues. Investors are now closely monitoring any official US response to the Chinese White Paper, which could serve as a catalyst for broader market stabilization or, conversely, reaccelerate risk-off sentiment.
Market rally contingent on US reaction to China’s overture
Key sectors to watch include semiconductors, shipping, and logistics
Short-term volatility likely to persist pending policy clarity
