US stocks reverse after rising more than 3% in early session

At the close of trading on April 8, the DJIA index fell 0.84%. The S&P 500 lost 1.57% and the Nasdaq Composite fell 2.15%.

At the start of the session, indexes rose more than 3%, thanks to signals that the US was ready to negotiate import tariffs with trading partners. However, the market later reversed when White House press secretary Karoline Leavitt said President Donald Trump expected import tariffs on nearly 70 trading partners to go up on April 9, as planned.

Of which, the tax on China alone will be increased by 50%. According to the US announcement last week, China's reciprocal tax rate is 34%.

However, two days ago, Mr. Trump threatened to impose an additional 50% on Chinese goods if China did not withdraw its retaliatory tariffs. Thus, the total tax on Chinese goods entering the US is up to 104%.

This is the first time in nearly a year that the S&P 500 has fallen below 5,000 points. In total, the market capitalization of the companies in this index has decreased by $5.83 trillion over the past four sessions. The S&P 500 is approaching a bear market, having fallen nearly 19% since its February peak.

Tech giants also fell after a sharp rally. Nvidia and Meta Platforms both fell more than 1%. Apple and Tesla lost nearly 5%. Amazon dropped 2.6%. These companies all have a large presence in China and are among the most affected by Beijing's retaliatory tariffs on Washington.

The CBOE Volatility Index, a gauge of fear in the US stock market, has rebounded to 52. This is the highest closing level since March 2020. Earlier in the session, the index was below 40 points.

"Investors were optimistic that the US would signal that it was getting close to a deal, or make concessions to one of its major trading partners. However, that doesn't seem to be happening as the tariff deadline approaches," said Lindsey Bell, market strategist at Clearnomics.

During a hearing before the US Congress, US Trade Representative Jamieson Greer also said that import tax exemptions may not happen in the short term.

According to US Treasury Secretary Scott Bessent, nearly 70 countries have approached the US to adjust the trade balance. White House economic adviser Kevin Hassent also said they are ready to present Mr. Trump with a plan on the subject and timing of tax negotiations.

"The president will decide whether and when to negotiate with China. But right now, we have received guidance that we will prioritize allies and trading partners like Japan, South Korea and others," he said.Fox News.