US Futures Rally Following Steep Losses Amid Tariff Concerns
US equity markets are poised for a sharp rebound in Tuesday’s trading session as futures on major indices surged up to 2%, signaling a gap-up opening after enduring a three-day rout triggered by renewed global trade war fears. The recovery in US futures aligns with broader global market optimism, as several international indices also posted gains, reversing losses from earlier sessions when volatility soared following Washington’s imposition of wide-ranging tariffs.
At approximately 2:30 PM IST, futures linked to the S&P 500 index rose 1.57% to 5,141.90, while the Dow Jones Industrial Average futures climbed 2.02% to 38,733.0. The tech-heavy Nasdaq 100 futures also registered an increase of 1.34% to 17,664.5, indicating strong early momentum across Wall Street. The US stock markets are set to open at 7:00 PM IST.
S&P 500 futures gained 1.57% to 5,141.90
Dow Jones futures rose 2.02% to 38,733.0
Nasdaq 100 futures increased 1.34% to 17,664.5
US stock markets scheduled to open at 7 PM IST
Also Read:- Mazagon Dock FY25 Turnover Up 14%; ₹3 Interim Dividend Announced
Global Market Recovery Boosts Sentiment in the US
The rally in US futures was mirrored across major global markets, where sentiment improved sharply on Tuesday after multiple sessions of heavy losses. The sharp reversal comes as fears of a full-blown trade war receded somewhat, especially after several key economies—including the European Union and Japan—signaled openness to negotiations with the United States rather than escalating tariff retaliation.
India and the US have already initiated talks for a potential bilateral trade agreement (BTA), with New Delhi moving swiftly to address Washington’s trade concerns following the imposition of a 26% reciprocal tariff on Indian goods. This development is viewed positively by investors, as it may shield certain key Indian sectors—such as electronics and pharmaceuticals—from the worst of the tariff impact.
EU and Japan opened diplomatic channels to negotiate trade terms
India initiated bilateral trade agreement discussions with the US
Market optimism rises amid hopes for de-escalation of trade tensions
Trump’s Escalation Against China Raises Stakes
US President Donald Trump has doubled down on his protectionist stance, threatening an additional 50% tariff on Chinese imports if Beijing fails to roll back its retaliatory duties. This move significantly raises the stakes in the US-China trade confrontation, with analysts warning that the Chinese economy may be the most vulnerable among major global players if the new duties are enforced.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted three critical insights from the ongoing global trade developments: first, that the trade war appears increasingly isolated to the US and China; second, that the risk of a recession in the United States has now increased; and third, that China is likely to be the most severely affected economy due to its heavy dependence on exports to the US.
Trump threatens additional 50% tariffs on Chinese imports
Analysts warn of deep disruption to Chinese export economy
US-China trade tensions seen as a primary global economic risk
European and Asian Markets Stage Strong Recovery
European stock markets also staged a notable rebound on April 8, with the pan-European STOXX 600 gaining 1.56%, while Germany’s DAX index advanced 1.53%. The broad-based rally in Europe came as investors digested the likelihood of a more diplomatic response from EU nations to US trade actions, avoiding retaliatory tariffs for the time being.
Meanwhile, Asian markets led the global recovery with Japan’s Nikkei 225 index surging as much as 6% during the session to hit 33,012.58, supported by broad-based buying in consumer and technology stocks. The broader Topix index also surged 6.26%. Gains were recorded in other major indices including the Hang Seng in Hong Kong, the Kospi in South Korea, and the Shanghai SSE Composite Index, all of which traded in positive territory following sharp falls on Monday.
STOXX 600 rose 1.56%; Germany’s DAX gained 1.53%
Nikkei 225 jumped 6% to 33,012.58; Topix up 6.26%
Hang Seng, Kospi, and SSE Composite recovered strongly after steep drops
Indian Markets Bounce Back Sharply After Steep Losses
Indian equity markets also mirrored the global trend, with the Sensex and Nifty staging a sharp intraday rally after logging their worst single-day fall in nearly 10 months on Monday. The Sensex jumped 1,617.16 points, or 2.21%, to touch a high of 74,755.06, while the broader Nifty surged by 504.6 points, or 2.27%, reaching 22,666.20. The rally was supported by gains across banking, IT, and auto stocks, alongside a resurgence in midcaps and smallcaps.
Investors seemed to be reassured by the Indian government’s swift engagement with US trade officials, along with the relative insulation of some key export sectors from the highest tiers of US tariffs.
Sensex surged 1,617.16 points to 74,755.06 (+2.21%)
Nifty climbed 504.6 points to 22,666.20 (+2.27%)
Banking, IT, and auto sectors led gains; strong rebound in midcaps and smallcaps
