US Stock Futures Plunge as Trump Tariffs Ignite Sell-Off
Major US stock index futures plummeted on Monday, signaling a sharp market decline as investors reacted to President Donald Trump's announcement of tariffs on China, Mexico, and Canada. Nasdaq 100 futures (NQ=F) nosedived 1.9%, leading the way down but recovering some losses from earlier in the morning. S&P 500 futures (ES=F) spiraled 1.7%, while futures tied to the Dow Jones Industrial Average (YM=F) tumbled 1.5%, a drop of over 600 points.
The tariffs, effective Tuesday, will include a 25% levy on imports from Canada and Mexico, and a 10% tax on Chinese goods. Energy imports from Canada will be subject to a lower 10% duty. Trump has also threatened tariffs on Europe but has not provided further details. European stock markets (^STOXX) followed suit, posting losses on Monday.
The US dollar index (DX-Y.NYB, DX=F) surged near its highest levels in two years. Meanwhile, West Texas Intermediate crude futures (CL=F) jumped by more than 2%, outpacing the 1.6% rise seen in the international benchmark Brent (BZ=F).
With Trump's tariffs materializing over the past week as expected, attention has shifted to retaliatory measures. As reported by Yahoo Finance's Ben Werschkul, Canada and Mexico have swiftly announced tariffs on a range of US goods. Prime Minister Justin Trudeau indicated that Canada will impose 25% counter-tariffs on approximately $107 billion worth of American products.
The trade war is creating "considerable uncertainty about President Trump's trade agenda for 2025." This uncertainty contributes to the Federal Reserve's reluctance to raise interest rates due to fears of rising inflation.
The tariffs are expected to directly impact consumers across various industries. Automobiles and auto parts, gas and oil, clothing, computers, whiskey, and avocados are just a few of the items likely to see price increases.
Key Market News
* Nvidia (NVDA) sank 4% in pre-market trading, leading tech stocks lower on Monday, as US tariffs on imports from Canada, Mexico, and China take effect on Tuesday.
* Goldman Sachs Warns Trump Tariffs Could Hurt S&P 500 Earnings
* Big Three US Automakers' Stocks Retreat
* Keep an Eye on Footwear and Clothing Stocks
* Hong Kong-Listed Shares in Chinese Companies Outperform
* Europe Stocks Tumble as Automakers Take a Hit
* Asia Markets Slide as Trump Tariffs Make Impact
* Oil Jumps in Response to Trump Tariffs