Key U.S. stock index futures fell on Monday, extending the sell-off into a third session. The White House's unwavering tariff strategy against major trading partners has ignored the market chaos, Trading Economics reported on April 7.
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Depth of fall
Dow futures fell 2.8% and S&P 500 futures fell 2.3%, 20% below their record highs, which experts warn could signal a bear market entering the market. The Nasdaq lost 3% and had been in that zone since last week, fueled by recession fears from Trump's aggressive tariffs. Tech giants have taken the biggest hit, with Apple shares down 25% since the start of the year, Nvidia down 20% and Microsoft down 14.6%.
Tariff catalyst
On April 2, Donald Trump announced new import tariffs, waving a chart with rates ranging from 10% to 50%. They will go into effect on April 5 and 9, and will affect most countries with which America trades.
Global echo
The trade war is already rocking the global economy. The EU is preparing retaliatory steps, the UK is dreaming of a favorable agreement with Washington, and China has retaliated by imposing 34% tariffs on American goods. The tension is only exacerbating the market panic, pushing US indices into a dark abyss.
- Stock market