President Trump’s “day of liberation” was succeeded by “day of calculation” on Wall Street.
Stock prices plummeted on Thursday morning, following President Donald Trump’s announcement of an unprecedented series of mutual tariffs that could escalate into a trade war and disrupt global economies.
As of 9:45 AM, the Dow Jones industrial average dropped 1,162 points (2.75%).
The S&P 500 fell by 3.4%, and after Trump impacted the market on Wednesday, NASDAQ recorded a drop of 4.5% after he unveiled tariffs of at least 10% on all imports and even steeper taxes on multiple countries.
“This represents the worst-case outcome for tariffs, and we are witnessing a risk-averse reaction as there was no priced supply in the market,” stated Mary Ann Bartels, chief investment strategist at Sanctuary Wealth, in a memo.
“Expect a tumultuous market in the upcoming months and through the end of the first half of the year,” she added.
While appearing on Fox News’ Fox and Friends on Thursday morning, Vice President JD Vance emphasized he wouldn’t hold back in addressing the immediate impact tariffs could have on Americans, but underscored the necessity for “significant change” in the U.S.
Companies with supply chains heavily reliant on China experienced significant declines.
Share prices of Apple, which manufactures a majority of its iPhones in China, fell by 7.5% after Trump increased tariffs on Beijing by 34%.
The tech giant has made efforts to expand operations to Vietnam and India to diversify production away from China, but these efforts may be in vain as Trump imposed tariffs of 46% and 26% in those respective countries.
Intel shares dropped by 3.7%, while Qualcomm fell by 4.7%.
Significant tech stocks recorded losses, with Nvidia down by 5.9%, Tesla declining by 5.9%, and Amazon dropping by 7.2%.
Sneaker brands like Nike, Adidas, and Puma—many of which are shifting operations to Vietnam due to its manufacturing capabilities—also faced declines on Thursday morning. Nike experienced the largest drop, with stocks decreasing by 13.7%.
The US dollar index dropped 2.1% as Trump’s tariff proposals unsettled the market, marking the largest daily increase since 2015, with the euro gaining 2.4%.
Citi had advised a long position in the euro, yet the strategist anticipated the US dollar would fall to its lowest value since October 2021.
The 10% baseline is approximately triple the average US tariff rate prior to Trump’s administration in January and is scheduled to start at 12:01 AM on Saturday.
Some mutual tariffs exceeding 10% will commence after midnight on April 9th, providing some opportunity for certain countries to negotiate with the United States.
However, this uncertainty regarding the implementation of the tariffs could continue to create challenges for the stock market.
“We have moved past the liberation day, but the specifics regarding the tariffs remain unclear as President Trump has complete authority to modify these tariffs and adjust them as he sees fit,” remarked David Bahnsen, chief investment officer of the Bahnsen group, in a memo.
“For the stock market, which was seeking clarity, there is now even more uncertainty than before this announcement.”
