NEW YORK, New York - U.S. stocks tumbled again on Tuesday, igniting fear of the fallout from U.S. President's Donald Trump's trade war, as tensions with China escalated with U.S. tariffs on China rising to 104 percent. iPhone was the biggest loser on Tuesday, with the phone maker's stock now having lost a fifth of its value in the past few trading days.

"Ultimately, it becomes a game of which country can actually manage its own population more effectively to manage the subsequent economic consequences from this trade war," Zhiwu Chen, professor of finance at HKU Business Schooltold Reuters news agency Tuesday .

"Trump has to face, or at least Republican politicians have to face a lot of electoral pressure, and the American media are still pretty much free," he said. "So I think Trump's ability to fight politically with China is not that great."

The Standard and Poor's 500 declined by 79.48 points, or 1.57 percent, closing at 4,982.77.

The Dow Jones Industrial Average fell 320.01 points, or 0.84 percent, ending the session at 37,645.59.

The tech-heavy NASDAQ Composite decreased by 335.35 points, or 2.15 percent, to finish at 15,267.91.

Market Sentiment Influenced by Tariff Implementation

The market downturn followed the U.S. government's decision to impose a 104 percent tariff on Chinese imports, effective from midnight on April 8. This move has escalated global trade tensions, with China and Canada announcing retaliatory measures. Investors are increasingly concerned about the potential for a prolonged trade conflict and its impact on corporate profits and economic growth. 

Analysts warn that the escalating tariff disputes could lead to further market volatility and have advised investors to brace for potential fluctuations in the coming sessions.

Global Currency Markets React to Tariff Concerns and Safe-Haven Flows

On Tuesday, the foreign exchange markets experienced notable movements as investors responded to escalating trade tensions and sought refuge in traditional safe-haven currencies.

Euro and British Pound Strengthen Against the U.S. Dollar

The euro appreciated against the U.S. dollar, with the EUR/USD pair rising by 0.44 percent to 1.0953. Similarly, the British pound saw gains, as the GBP/USD pair increased by 0.43 percent, to be last quoted at 1.2769.

U.S. Dollar Declines Versus Japanese Yen and Swiss Franc

The U.S. dollar weakened against the Japanese yen, with the USD/JPY pair declining by 1.15 percent to 146.11. A similar trend was observed against the Swiss franc, as the USD/CHF pair fell by 1.36 percent, to 0.8480.

Commodity-Linked Currencies Show Mixed Performance

The Australian dollar depreciated against its U.S. counterpart, with the AUD/USD pair dropping by 0.53 percent to 0.5951. The New Zealand dollar remained relatively stable, as the NZD/USD pair edged down by 0.04 percent to 0.5530.

Canadian Dollar Slightly Weaker Against the U.S. Dollar

The Canadian dollar experienced a marginal decline, with the USD/CAD pair ticking up by 0.08 percent to 1.4258.

Market Sentiment Influenced by Trade Tariffs

The movements in the currency markets were largely driven by investor reactions to recent trade tariff announcements. Concerns over potential economic slowdowns prompted a shift towards safe-haven currencies like the Japanese yen and Swiss franc.

Global Stock Markets Rally on Tuesday, Led by Strong Gains in the UK, Europe and Asia

Stock markets across the globe, excluding North America, surged on Tuesday, with major European and UK indices posting strong gains and Asian markets showing a mixed but generally positive performance. Investor sentiment appeared buoyed by easing geopolitical concerns and decreasing anxiety over the Trump tariffs.

Canadian Market Impacted

Canada's S&P/TSX Composite Index goping against the global trend, dropped by 352.56 points, or 1.54 percent, closing at 22,506.90. ​

UK and Europe Sees Widespread Gains

European markets closed sharply higher, with the FTSE 100 in London jumping 208.45 points to 7,910.53, a gain of 2.71 percent. Germany's DAX surged 490.64 points, or 2.48 percent, to end the session at 20,280.26. France's CAC 40 also climbed strongly, adding 173.30 points to close at 7,100.42, a rise of 2.50 percent.

The EURO STOXX 50, representing leading blue-chip companies in the eurozone, advanced 117.24 points to 4,773.65, up 2.52 percent. The Euronext 100 Index gained 35.30 points to finish at 1,405.66, increasing by 2.58 percent. Belgium's BEL 20 led European gains with a 3.10 percent rise, adding 122.02 points to close at 4,052.27.

Asia-Pacific Markets Mostly Positive

In Asia, Japan's Nikkei 225 skyrocketed by 1,876.00 points, closing at 33,012.58 — a significant gain of 6.03 percent, leading the global rally. Hong Kong's Hang Seng Index added 299.38 points to finish at 20,127.68, up 1.51 percent.

India's S&P BSE Sensex also posted a solid performance, rising by 1,089.18 points or 1.49 percent to close at 74,227.08. Meanwhile, Australia saw strong growth, with the S&P/ASX 200 gaining 166.70 points to 7,510.00, up 2.27 percent, and the All Ordinaries climbing 180.10 points to 7,704.40, up 2.39 percent.

The SSE Composite Index in Shanghai rose 48.97 points to 3,145.55, an increase of 1.58 percent, while the KOSPI Composite Index in South Korea edged up 6.03 points to 2,334.23, a gain of 0.26 percent.

However, not all Asian markets joined the rally. Taiwan's TWSE Index fell sharply by 772.40 points, closing at 18,459.95, a decline of 4.02 percent. Singapore's STI Index also dropped, losing 71.03 points to end at 3,469.47, down 2.01 percent. Malaysia's FTSE Bursa Malaysia KLCI saw a marginal dip, losing 0.24 points to 1,443.56, down 0.02 percent.

New Zealand's S&P/NZX 50 Index gained 115.56 points to close at 11,891.44, rising 0.98 percent. Israel's TA-125 added 38.56 points to reach 2,444.63, up 1.60 percent.

Middle East and Africa Markets Join Rally

Egypt's EGX 30 Price Return Index advanced by 195.10 points to 30,649.00, a rise of 0.64 percent. In South Africa, the Top 40 USD Net TRI Index jumped 105.12 points to 4,249.72, gaining 2.54 percent.

Tuesday's widespread gains highlighted renewed investor confidence across global markets, with the UK, Europe and Japan leading the day's performance. While a few markets in Asia-Pacific saw losses, the overall sentiment remained positive heading into the midweek sessions, although the major sell-off on U.S. and Canadian markets will likely sap the global euphoria..

Related story:

Monday 7 April 2025 | Sellers swamp global stock markets, Wall Street steadies | Big News Network