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U.S. Markets Stumble as Trade Tensions Persist and Economic Data Looms

Investors face uncertainty from unresolved U.S.-China tariff disputes while awaiting key earnings and GDP figures this week.

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A woman walks down Wall Street in New York City, U.S., April 8, 2025. REUTERS/Kylie Cooper
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Overview

  • The S&P 500 has fallen 2.6% since President Trump announced sweeping tariffs on April 2, while global markets have shown relative strength.
  • Treasury Secretary Scott Bessent contradicted Trump's claims of active trade talks with China, stating Beijing must take the first step to de-escalate tensions.
  • The Atlanta Federal Reserve's GDPNow model projects a Q1 economic contraction, raising concerns of a broader slowdown exacerbated by trade policies.
  • Shipping flows between China and the U.S. have dropped by over 60%, signaling significant supply chain disruptions and potential repercussions for businesses and consumers.
  • Investors are closely watching upcoming corporate earnings, particularly from major tech firms, and economic indicators like GDP and employment data to assess the tariffs' impact.