Devarsh Vakil, Head of Prime Research, HDFC Securities
All major U.S. indices fell sharply after President Trump announced a 100% tariff on Chinese goods and fresh export controls. The S&P 500 dropped 2.7%, the Nasdaq fell 3.49%, and the Dow lost 1.9%, with technology and semiconductor stocks leading the declines.
Semiconductors and Tech Hit Hardest
Major chipmakers tumbled amid China’s rare earth export restrictions and U.S. tariff threats. AMD, Micron, Synopsys, and Nvidia fell 5-8%, while Qualcomm dropped after China launched an antitrust investigation.
Bitcoin and Crypto Markets Plunge on Tariff Shock
Bitcoin crashed nearly 10% intraday, briefly dipping to $104,000 before recovering to $111,807. Massive liquidations wiped billions from digital assets, with altcoins and crypto stocks suffering outsized losses.
Trump’s latest Tweet – “Don’t worry about China”
US futures ticked higher in early trade as investors welcomed Donald Trump’s latest remark to “not worry about China,” easing short-term trade jitters. Asian markets followed with mild gains, led by strength in tech and cyclicals as risk sentiment improved.
Cryptocurrencies bounced back with Bitcoin rising over 3% and leading gains in altcoins like Ethereum and Solana as investor sentiment improved.
Indian Markets – Futures Volatile on Global Cues
SGX Nifty futures fell sharply following a steep crash in US markets triggered by President Trump’s announcement of massive new tariffs on China, and have recovered slightly after Trump’s latest tweet suggesting some diplomatic progress.
Positional trend of the Nifty remains positive as it is placed above important short-term moving Averages. Any decisive breakout above 25450 would confirm the bullish breakout from the recent consolidation. Above 25450, Nifty could extend its rally towards the positional resistance of 25670. On the downside, 25000 would continue to serve as support for Nifty.
Indian markets will open subdued today on the back of weak global cues.