Traders work on the New York Stock Exchange moment floor before the April 2, 2025 closure Bell and the start of the customs press conference for President Donald Trump.
Spencer Platt | Getty Images
As President Donald Trump announced sweeping tariffs of at least 10% or more in some countries, US stock futures have won craters, pose the risk of a global trade war that is already struggling with the US economy.
Futures linked to Dow Jones Industrial Average We lost 1,069 points, or 2.5%. S&P 500 Futures A 3.6% decrease. Nasdaq-100 Futures I lost 4.5%.
Stocks of multinational companies fell over in expanded trading. Nike and apple Each one fell by about 7%. The stocks of big imported sellers were hit hardest. The five below Losed 14%, Dollar Tree I fell 11% gap It hit 8.5%. Technology stocks fell in overall risk-off mood nvidia 5% off Tesla A 7% decrease.
The White House has announced a 10% baseline tariff rate in all countries that will come into effect on April 5th. The administration says a larger obligation will be charged in the coming days for countries to collect higher rates in the US.
“We've charged about half of what they're and charged us,” Trump said at a press conference from the White House Rose Garden. “So the tariffs are not entirely mutual.”
Half of that figures include “the total speed of all tariffs, non-financial barriers and other fraudulent activities,” he said.
The most likely chance of siphoning traders is that these rates are much higher than expected in many countries. For example, China's effective tariff rate would be 54% if it already imposes new mutual rates and duties on the country. Traders want rates from 10% to 20% to be universally applied caps, not the smallest starting point.
“What was delivered was just as unplanned as this administration had done so far, and the ultimate level of complications for the new tariffs was worse than feared and had not yet been put to the market,” said B. Riley Wealth Management chief market strategist.
The S&P 500 rose on Wednesday in hopes that Trump will not announce strict tariff plans on the risk of increasing the economy slowing down and increasing the already sticky inflation.
The benchmark has been hit hard since late February, falling into the revised territory as the uncertainty caused by Trump's continued tariff announcements increased. This uncertainty began to manifest in some sluggish economic data. This puts more pressure on the stocks by increasing the fear of the recession.
“If he was in just 10%, I think the market is probably going up a lot now,” said Larry Tentarelli, Chief Technical Strategist of the Blue Chip Trend Report. “But the tariffs are bigger than expected, so I think what it's doing is creating more negative side volatility now.”
Estimates losses after trading hours on Wednesday, the S&P 500 is on the course to return to the revision during normal business hours on Thursday.
