Stocks plumb new depths as China responds

Chris Beauchamp IG

The rush to sell risk assets is becoming a stampede, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

Stocks keep falling as China announces retaliatory tariffs

Day 2 of the Trump Trade War has seen stocks fall further and countries begin to respond in earnest to Wednesday’s tariff bonanza. Dow futures slipped below 40,000 and neared 39,000 on news that China would respond with fresh tariffs of its own. The chaos engulfing the global economy makes a recession much more likely, which is why we’ve seen increased chances of Fed rate cuts at the May and June meetings.

Short-term bounce likely?

Today’s trading has had an air of panic about it, which may provide the fuel for a short-term bounce, but until the administration changes its tune on tariffs or gets its tax cut plans through such rallies are unlikely to go on too long. With the VIX at elevated levels, investors can continue to expect wild swings for the time being.

Author

Chris Beauchamp

Chris Beauchamp has been with IG for four years, and in that time has become a regular commentator and analyst for the financial press and TV, with appearances on all the major financial channels as well as the BBC and Sky News.

GBP/USD climbs to two-day highs past 1.3200

GBP/USD picks up extra pace and surpasses the 1.3200 threshold on Thursday. That said, Cable manages to shrug off initial weakness and regain balance on the back of the fresh selling pressure hurting the Greenback.

EUR/USD pushes harder; focus is back to 1.1400

EUR/USD’s daily recovery now gathers steam, sending spot to the vicinity of the key 1.1400 barrier on Thursday. The pair’s bounce follows some decent loss of momentum in the US Dollar in the wake of the release of US PCE data and the weekly labour market readings.

Gold bounces from 2026 lows, remains pressured

Gold reverses part of its recent weakness on Thursday, managing to reclaim the area just above the $4,000 mark per troy ounce. The precious metal regains traction on the back of renewed selling interest in the Greenback, although expectations of rate hikes by the Fed are likely to keep buyers on the sidelines for now.

Bitcoin tests $60,000 as whales sell off – Aave and Jupiter show resilience

The broader cryptocurrency market remains under intense selling pressure, with Bitcoin back at $60,000 for the third time this year. On-chain data shows selling pressure from large-wallet investors, commonly referred to as whales, while total liquidations hit nearly $1 billion in 24 hours.

Crypto Today: Bitcoin, Ethereum, and Ripple defend their last line of defenses

The broader cryptocurrency market remains under immense downward pressure as investors' interest shifts toward lucrative AI and memory stocks. Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are holding above their June 6 lows, with bulls hoping short-term resilience will ward off sellers.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.