US Stock Futures Plunge on Tariff Announcement
New York - US stock futures indicate significant losses for major indices as Wall Street reacts to President Donald Trump's announcement of tariffs on China, Mexico, and Canada.
Futures Dive
* Nasdaq 100 futures (NQ=F) lead the decline, dropping 1.9%.
* S&P 500 futures (ES=F) spiral downward by 1.7%.
* Dow Jones Industrial Average (YM=F) futures tumble 1.5%, or over 600 points.
Tariff Details
* Tariffs include 25% duties on Canada and Mexico, and 10% on China.
* Energy imports from Canada will face a reduced duty of 10%.
* Trump has also threatened tariffs on Europe.
Market Reactions
* European stock markets (^STOXX) decline.
* US dollar index (DX-Y.NYB, DX=F) surges near its highest levels in two years.
* West Texas Intermediate crude futures (CL=F) jump over 2%.
Retaliatory Measures
* Canada and Mexico announce counter-tariffs on various US goods.
* Canada's Trudeau pledges 25% tariffs on $107 billion worth of American products.
Impact on Consumers
* Tariffs will impact prices for various items, including automobiles, oil, clothing, and electronics.
Big Three Automakers Hit
* Shares of Ford (F) and General Motors (GM) fall in pre-market trading, reflecting concerns over cross-border trade and higher input costs.
Footwear and Clothing Stocks in Focus
* Analysts expect the new tariffs to impact footwear and clothing retailers, with companies like Yeti (YETI) facing significant exposure.
Goldman Sachs Warns of Earnings Impact
* Goldman Sachs warns that sustained tariffs could reduce S&P 500 earnings growth and drive down stock prices.
Asia Stocks Fall, Tech Buoys Hong Kong
* Hong Kong-listed Chinese stocks outperform Asian peers thanks to strength in the tech sector.
European Stocks Tumble
* European stocks fall sharply amid fears of retaliatory tariffs.
* Carmakers, including Stellantis, lead the sell-off.
Asian Markets Slide
* Asian markets slump after Trump's tariff announcement.
* Major indices in Hong Kong, Japan, South Korea, and Australia suffer heavy losses.
Impact on Oil Prices
* West Texas Intermediate and Brent crude futures jump in response to tariffs on Canadian oil.
* Consumers anticipate higher energy prices.