U.S. Markets Slide: Dow Futures Drop 300 Points as China Continues to Devalue Yuan for Fifth Consecutive Day

Dow Futures have fallen over 550 points. Those linked to S&P 500 and Nasdaq, have both dropped over 330. The U.S. benchmark indexes, which were up by more than 4% in the morning, lost those gains when the White House confirmed President Donald Trump would implement his retaliatory trade tariffs would take effect midnight US market time. Li Qiang, Premier of China, said that his country had ample policy instruments to "fully offset negative external shocks". After a disappointing US bond auction, concerns were raised about the safety of government debt.

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China's central bank is carefully orchestrating the weakening of the yuan to mitigate the impact of the Trump China tariffs on the economy without destabilizing the financial markets.

To start the week, the 10-year yield ( TNX), jumped 17 basis-points. This is a huge 34 basis-point swing from a minimum of 3.87% up to a maximum of 4.21%. The yield continued to rise on Tuesday, rising as much as ten basis points and hovering around 4.25%.

Apple's initial rise from $186.73 to $190.34 was impressive. Investors began to pull out after the announcement of tariffs.

After the initial losses, US futures have begun to recover.

Dow futures are now down 200 points, compared to 600 points earlier.

S&P Futures are down by 30 points. Nasdaq Futures are also down by 35 points.

Chinese stocks fell as President Donald Trump's promise to impose even higher Trump tariffs intensified the trade war between the US and China.

The Hang Seng China Enterprises Index fell by up to 3.1% while the CSI 300 Index fell 1.2% on the Chinese mainland, bringing an abrupt end to the brief recovery of Tuesday.

South Korea's equity index dropped. This extended a decline that now has the gauge heading for a bear-market as investors prepare to receive reciprocal tariffs from US President Donald Trump.