*

Wall Street slides, rebounds as Trump digs in on tariffs

*

Trump threatens additional 50% tariff on China

*

Futures price in extra Fed easing this year

*

Oil near 4-year low as trade conflict fuels recession

fears

*

Investors pile into safe-haven currencies amid tariff

worries

(Updates to afternoon New York trading)

By Caroline Valetkevitch

NEW YORK, April 7 (Reuters) -

Major stock indexes were mixed on Monday in turbulent

trading dominated by concerns over U.S. President Donald Trump's

global trade war, while the U.S. dollar and bond yields rose.

Trump said on Monday he will impose an additional 50% tariff

on China if Beijing does not withdraw its retaliatory tariffs on

the United States. In addition, the White House denied a report

that Trump is considering a 90-day pause in tariffs for all

countries except China.

The report, which the White House said was "fake news,"

briefly turned U.S. stocks positive earlier.

The market swung wildly between heavy losses and gains, with

the S&P 500 last up slightly.

"You can tell shorts are on a hair trigger today, watching

around every corner for a possible Fed intervention, tariff

pause, or trade deal. It goes to show you just how short-lived

this market rout is likely to be," said Jamie Cox, managing

partner at Harris Financial Group in Richmond, Virginia.

Traders bet the increasing risk of recession could result in

the Federal Reserve cutting interest rates as early as May.

Futures markets moved to price in almost five quarter-point cuts

in U.S. rates this year.

Rising costs will also put pressure on company profit

margins, with the U.S. earnings season about to get under way

later this week.

The Dow Jones Industrial Average fell 82.24

points, or 0.21%, to 38,232.62, the S&P 500 rose 28.04

points, or 0.59%, to 5,104.20 and the Nasdaq Composite

rose 166.96 points, or 1.07%, to 15,754.75.

The S&P 500 went from a low of 4,835.04 to a high of

5,246.57.

MSCI's gauge of stocks across the globe

fell 14.27 points, or 1.87%, to 750.02.

At the open, the S&P 500 had been on pace to confirm a

bear market. By Friday's close, S&P 500 companies had wiped out

$5 trillion in stock market value since Trump unveiled the

tariffs late on Wednesday.

European shares also slumped, with the STOXX 600 closing

at its lowest since January 2024. The pan-European STOXX 600

dropped

4.5%, down for the fourth straight session.

In Asia, Hong Kong's Hang Seng's 13% one-day

slump was the largest since 1997, while in mainland China the

blue-chip CSI 300 index was down 7%, only finding a

floor when state media reported China's sovereign fund Central

Huijin was a buyer.

Treasury yields rose, with traders continuing to try to

gauge how long trade levies will last and to what degree they

will dent economic growth.

The yield on benchmark U.S. 10-year notes

rose 17.7 basis points to 4.168%, from 3.991% late on Friday.

They fell to 3.86% on Friday, the lowest since October 4.

The 2-year note yield, which typically moves

in step with interest rate expectations for the Fed, rose 7.4

basis points to 3.744%, from 3.67% late on Friday.

The European Union is still willing to negotiate with

the U.S. administration, European Commission President Ursula

von der Leyen reaffirmed on Monday, adding that Brussels was

also ready to take counter measures.

The dollar also gained, while a gloomier growth outlook

kept oil prices down.

The dollar index, which measures the greenback

against a basket of currencies including the yen and the euro,

rose 0.6% to 103.21, with the euro down 0.08% at $1.0946.

Against the Japanese yen, the dollar strengthened 0.74%

to 147.96.

U.S. crude fell 1.16% to $61.27 a barrel and

Brent fell to $64.77 per barrel, down 1.24% on the day.

Gold prices fell as well as investors opted to buy the

dollar. Spot gold fell 2.31% to $2,967.17 an ounce.

JPMorgan Chase ( JPM ) CEO Jamie Dimon

warned

the tariffs could have lasting negative consequences, while

fund manager Bill Ackman said they could lead to an "economic

nuclear winter."

"Last week's theme is continuing but there were some

meaningful developments over the weekend, in particular with

Wall Street titans and business leaders effectively coming out

very strongly against President Trump's policies and tariffs,"

said Oliver Pursche, senior vice president, advisor for

Wealthspire Advisors in Westport, Connecticut.

"That pressure is going to continue to mount."

(Additional reporting by Alun John in London and Saeed Azhar in

New York; Editing by Kim Coghill, Himani Sarkar, Shri

Navaratnam, Hugh Lawson, Nick Zieminski and Richard Chang)