Global markets today: Dow futures drop 1.5%, Nasdaq futures down 2.3%; UK's FTSE 100 set for biggest gain in 4 years

Global markets today: US stock futures dropped on Thursday, April 10, after a massive rally on Wall Street, spurred by US President Donald Trump's announcement of a 90-day reprieve on some of his ‘reciprocal’ tariffs. Wall Street experts believe the slide in crude oil and the US dollar pointed to fears that the trade war will bring a lasting damage to the American economy.

S&P 500 futures sank 1.5 per cent, indicating a pullback from Wednesday’s almost 10 per cent surge. Leading the declines were Apple and Tesla, which pulled back more than three per cent each in the premarket. The US dollar fell for a third day. Bonds advanced, and investors looked for safety in gold, the Swiss franc and the yen. Brent crude sank below $64 a barrel. 

Also Read: Tesla share price gains 5% on US market recovery even as stock crashes 40% YTD: Elon Musk loses $4.4 billion

US stock market cues

The pre-market cues come after a historic surge on Wall Street, where the S&P 500 soared more than nine per cent for its third-largest gain in a single day since World War II. The Dow Jones Industrial Average also saw its biggest percentage advance since March 2020, while the Nasdaq Composite scored its biggest one-day gain since January 2001 and second-best day on record.

While Donald Trump’s decision to pause some tariffs drove US stocks to a historic one-day rally, traders are shifting their focus to the impact of an economic downturn and prolonged volatility. US Treasury auction of 30-year bonds will be closely watched for any signs of nervousness about owning US debt.

Also Read: Donald Trump’s tariff tantrums tank Tesla stock, Elon Musk’s wealth falls below $300 billion for first time since Nov

UK's FTSE set for biggest gain in four years

UK shares rose on Thursday in broad-based gains after Donald Trump announced an immediate 90-day pause on many tariffs, bringing relief to investors following the recent global market rout. The blue-chip FTSE 100 rose 4.5 per cent, on pace to post biggest one-day jump since November 2020.

The midcap FTSE 250 index climbed 4.7 per cent, poised for its biggest single-day advance since March 2022. In the dramatic policy shift on Wednesday, Trump suspended most of the hefty tariffs less than 24 hours after they kicked in, providing relief to rattled global markets.

Also Read: ‘FAFO time’: Elon Musk responds to posts claiming action against alleged financial backers behind Tesla attacks in US

However, he simultaneously escalated the trade conflict with China by raising tariffs on Chinese imports to 125 per cent from 104 per cent, which had taken effect on Wednesday. Asian stock markets faced a sell-off on Thursday. Japan's Nikkei 225 index dropped 2.69 per cent, while Hong Kong's Hang Seng index fell by 1.80 per cent. South Korea's KOSPI index also declined by 1.3 per cent.