Wall Street Faces Turbulent Times: Tariffs Drive Futures Deeply into the Red
US stock futures are taking a dramatic dive this Sunday evening, setting the stage for Wall Street to brace itself for yet another tumultuous trading day on Monday. Investors are gripping their wallets as they prepare for further fallout from President Trump’s aggressive tariff policies.
A Bleak Outlook for Major Indices
Futures tied to the S&P 500 plummeted by over 4.5%, while the tech-heavy Nasdaq saw a staggering 5.5% decline. The Dow Jones Industrial Average futures are not faring any better, sinking 4.2%—equivalent to more than 1,500 points. Meanwhile, oil prices have taken a significant hit, dropping by more than 3% and plummeting below $60 per barrel for the first time since 2023. Learn more about oil prices here.
The Tsunami of Selling: Last Week’s Market Collapse
Wall Street is reeling from its worst week since the onset of the pandemic, with over $5 trillion in market value evaporating as panic ensued in response to Trump’s proposed tariffs. The Nasdaq Composite officially entered bear market territory on Friday, down more than 20% from its recent highs. The S&P 500 is fast approaching that grim threshold, while the Dow has slipped into correction territory. Catch up on the worst week here.
Tariff Talks: International Reactions
President Trump’s commitment to his trade agenda is unwavering, despite the turmoil on Wall Street and international backlash. Noteworthy reactions include:
- China has already announced retaliatory tariffs.
- The EU is preparing countermeasures in response to the escalating trade war.
- The US’s new baseline 10% duties on most trading partners went into effect over the weekend, with additional tariffs on certain "bad actors" set to commence this Wednesday. Get the latest on Trump’s tariff policy here.
Government Officials Stand Firm
Administration officials defended the president’s plans during appearances on various talk shows. Treasury Secretary Scott Bessent dismissed concerns that these tariffs could plunge the US economy into recession. In a somewhat surprising turn of events, JPMorgan became the first major US bank to project a recession on the horizon as analysts scramble to adjust their economic forecasts. Read more about JPMorgan’s forecast.
Bessent, along with top economic adviser Kevin Hassett, claimed that more than 50 countries have reached out to initiate negotiations, which brings up logistical questions with the tariffs going into effect soon. Commerce Secretary Howard Lutnick emphasized that the tariffs will "definitely stay in place for days and weeks."
Trump Remains Defiant
In response to the growing fears and uncertainty, President Trump has largely been offline except for a series of golf-themed social media posts urging Americans to "hang tough." He did, however, re-share a video insinuating that he is "purposely crashing" the stock market. When questioned about this on Sunday, Hassett stated that Trump’s goal is not to undermine the market but instead "to deliver for American workers."
Oil Prices Tumble Amid Trade War Concerns
With fears of a brewing global trade war, oil prices fell more than 3% this Monday, compounding losses from the previous week. Growing concerns are brewing that such a trade conflict could hinder the global economy and weaken oil demand. Read about the oil price drop here.
What Lies Ahead?
As markets prepare to open, futures are down across the board, reflecting a grim outlook for the near future. For more developments on tariffs, our live blog offers constant updates.
This tumultuous environment raises pivotal questions about resilience, recovery, and the impact of political decisions on the financial landscape. Investors and market watchers alike will be closely monitoring the upcoming trading sessions for signs of stabilization—or further panic.
