US Markets Fall Amidst Tariff Announcement

Overview

US stock futures plunged on Monday, reflecting the impact of President Trump's tariffs on China, Mexico, and Canada.

Key Figures

* Nasdaq 100 futures (NQ=F): -1.8% * S&P 500 futures (ES=F): -1.6% * Dow Jones Industrial Average futures (YM=F): -1.4% * US dollar index (DX-Y.NYB): Near 12-month high * Crude oil futures (BZ=F, CL=F): +2%

Tariffs and Retaliation

Effective Tuesday, tariffs of 25% will be imposed on goods from Canada and Mexico, and 10% on those from China. Trump also hinted at potential tariffs on Europe. Canada and Mexico have announced counter-tariffs on American products. The trade war uncertainty has raised concerns about inflation and Fed rate hikes.

Sector Impacts

The tariffs will directly affect consumer prices in industries such as: * Automobiles * Auto parts * Gas and oil * Clothes * Computers * Whiskey * Avocados

Global Market Impact

Asia: * Hong Kong stocks outperformed Asian peers due to tech strength. * Major Asian indexes fell significantly. Europe: * European stocks tumbled, led by automakers. * The Stoxx 600 (^STOXX) dropped 1.3%.

Oil and Energy

* Crude oil futures jumped in response to the tariffs on Canadian and Mexican imports. * Gas futures also rose.

Ongoing Developments

Focus remains on potential retaliatory measures from the EU, with Trump suggesting wider tariffs are imminent. Market volatility is expected to continue amidst the trade tensions.