TLDR
- Stock futures down sharply as markets brace for Trump’s upcoming tariff announcements
- S&P 500 down 5.1% for the quarter while Nasdaq has tumbled 10.3%, worst quarterly performance since Q3 2022
- Investors anxious about April 2 “Liberation Day” when Trump will unveil reciprocal tariffs on countries with trade imbalances with the US
- Gold hit record high above $3,150 as investors seek safe haven assets amid uncertainty
- Tech stocks particularly hard hit with Nvidia down 4% and Tesla down 6% in premarket trading
Stock markets around the world are falling sharply as investors prepare for President Donald Trump’s upcoming tariff announcements. The selloff is happening on the last trading day of a difficult quarter.
Futures on the S&P 500 dropped 1.0% in early Monday trading. Dow Jones Industrial Average futures fell 0.6%. The tech-heavy Nasdaq 100 futures tumbled even further, down 1.4%.
The negative momentum isn’t limited to US markets. Japan’s Nikkei 225 fell 4.1% on Monday. Hong Kong’s Hang Seng declined 1.1%, while Europe’s Stoxx 600 was down 1.2% in early trading.
Tariff Uncertainty Weighs Heavily
Investors are on edge ahead of April 2, which Trump has dubbed “Liberation Day.” This is when he plans to announce reciprocal tariffs on countries that have trade imbalances with the United States.
Global 25% tariffs on automobiles and car parts will take effect the following day, April 3. Several major trading partners, including Mexico and Canada, are considering possible retaliation.
Trump downplayed the reciprocal tariffs plan last week, saying it would be “very lenient.” However, recent reports suggest officials may be considering broad 20% tariff hikes.
In a weekend interview with NBC News, Trump made his position clear. He said he “couldn’t care less” if foreign automakers raise prices as a result of tariffs. “I hope they raise their prices, because if they do, people are going to buy American-made cars,” he stated.
Quarterly Performance Takes a Hit
The market downturn puts a negative cap on what has already been a challenging quarter. Heading into the final trading day, the S&P 500 has fallen 5.1% since the start of the year.
This decline is on track to end a five-quarter winning streak for the index. It would mark the worst quarterly performance since the third quarter of 2022.
The Nasdaq Composite has been hit even harder, down 10.3% over the same period. The Dow Jones Industrial Average has fallen 2.3% since January.
Last week continued the negative trend. It was the fifth week out of six that the S&P 500 and Nasdaq Composite ended in the red.
Tech Stocks Under Pressure
Technology stocks appear particularly vulnerable to the tariff concerns. Some of the biggest names in tech are showing steep premarket losses.
Nvidia was down over 4% before the opening bell. Tesla saw an even steeper decline, falling more than 6% in premarket trading.
Meta and Amazon were both down over 2%. The sell-off suggests investors are concerned about how tariffs might impact global supply chains that tech companies rely on.
Safe Havens Benefit
As stocks fall, traditional safe-haven assets are gaining ground. Gold prices have surged to record levels amid the uncertainty.
The precious metal topped $3,100 for the first time ever. It was trading around $3,147 an ounce, reflecting strong demand for security in times of market stress.
Bond yields are also reflecting the market’s cautious stance. Yields have dropped below 4.2%, erasing their monthly gains as investors move money into the relative safety of government debt.
Looking Ahead
The economic impact of Trump’s policy will take center stage later in the week. Market participants will be closely watching Friday’s jobs report for March.
A speech by Federal Reserve Chairman Jerome Powell at the Society for Advancing Business Editing and Writing conference in Arlington, Virginia, will also draw attention. Investors will look for hints about how the Fed views the potential economic impact of the tariffs.
Updates on private payrolls and job openings are also scheduled for release this week. These reports might provide clues about the health of the labor market.
For now, though, all eyes remain fixed on “Liberation Day” and what Trump’s tariff announcements will mean for global trade and markets.
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