Stock Market Volatility: Sensex Rises on Initial Tariff Pause, Dow Plunges as US Hikes Tariffs on China to 145%

Following initial optimism from President Trump's announcement of a pause on reciprocal tariffs for many countries on April 10, 2025, the Indian stock market experienced a positive surge. The Sensex opened at 74,963.47, a 1.51% increase (1116.32 points), and the Nifty also jumped 1.61% to 22,759.00. However, US markets reacted negatively after the US increased tariffs on Chinese imports to 145%, which includes a 125% tariff and an earlier 20% levy regarding fentanyl trafficking.. This led to a selloff, with the Dow Jones Industrial Average initially plummeting over 2,100 points before closing down 1,014 points (2.5%) on April 10, 2025. The S&P 500 fell 3.46%, and the Nasdaq Composite sank 4.31%. Tech stocks were particularly affected, with Tesla falling 8%, Apple over 4%, and Nvidia and Meta nearly 7%. Despite the market volatility, the 10-year US Treasury yield remained at 4.39%.