Stock Futures Dive as Investors React to Trump’s Tariffs: What You Need to Know

US stocks took a nosedive in after-hours trading following President Trump’s announcement of new tariffs. This decision has sparked concerns about a potential trade war, which could shake up the global economy.

Futures for the Dow dropped over 1,100 points, a significant decline of 2.7%. The S&P 500 futures fell by 3.9%, while the Nasdaq 100 futures plunged 4.7%. Just hours before the announcement, the markets had closed higher, but uncertainty set in as Trump revealed his plans, leading to a swift selloff.

Wall Street was on edge about the tariffs. Some analysts had hoped for a less severe announcement, but those expectations were shattered. Trump introduced a baseline 10% tariff on all imports, with even higher rates for certain countries. “This is much harsher than what most investors anticipated six months ago,” stated Jed Ellerbroek, a portfolio manager at Argent Capital. He warned that this could spell tough times for stock market investors.

The selloff intensified as the details of the tariffs sank in. Major companies felt the brunt of the impact. Apple saw its stock plummet over 7% in after-hours trading due to its heavy reliance on Chinese supply chains. Other tech giants like Tesla and Amazon also fell sharply, alongside retail giants like Nike and Walmart.

Dan Ives, a senior analyst at Wedbush Securities, described the tariffs as “worse than the worst-case scenario.” He highlighted the staggering tariffs on China, raising the rate to 54%. This decision could have long-lasting effects, with economists warning that it might disrupt global supply chains, increase inflation, and slow economic growth.

According to a recent survey by the National Association for Business Economics, about 60% of economists believe that tariffs will negatively impact economic growth. JoAnne Bianco, chief investment strategist at BondBloxx, pointed out that the market is likely to see continued volatility as investors grapple with the potential economic fallout from these tariffs.

Chris Zaccarelli, chief investment officer at Northlight Asset Management, observed that the initial optimism surrounding the announcement quickly faded once more details emerged. However, he suggested that these tariffs could be a starting point in negotiations with other countries, potentially leading to reduced rates in the future. For now, investors seem to be reacting hastily to the uncertainty.

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