U.S. Markets Partially Recover After Sharp Selloff Triggered by Tariff Tensions

U.S. stock futures rebounded on the morning of Thursday, April 17, 2025, following a steep decline in the previous session amid escalating trade tensions and newly announced export restrictions

Futures tied to the Dow Jones Industrial Average rose by 348 points (0.88%), while S&P 500 futures gained 1.05% and Nasdaq 100 futures advanced by 1.25%

What triggered the rebound?
The recovery followed a major selloff on Wednesday, during which the Dow dropped by 1.7% (around 700 points), the S&P 500 fell by 2.2%, and the tech-heavy Nasdaq Composite plunged by 3.1%, edging closer to bear market territory

Technology stocks were hit particularly hard. Nvidia lost 6.9% after it disclosed a $5.5 billion quarterly charge linked to new U.S. restrictions on the export of its H20 GPUs to China.
Other semiconductor companies also saw sharp losses: AMD fell by 7.3%, while ASML dropped 4.1%, as investors became increasingly concerned that President Trump's new tariff policies could inject more uncertainty into markets and dampen chip demand

Ongoing warnings of rising inflation and economic slowdown

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Federal Reserve Chairman Jerome Powell warned that Trump’s tariffs could fuel short-term inflation and slow down economic growth, placing the central bank in a difficult position as it tries to balance its dual mandate of maximum employment and price stability

These developments come at a critical time as investors brace for the corporate earnings season and assess the broader economic impact of protectionist trade policies