US Stock Markets Continue to Plunge After Trump's Tariffs Introduction

The US stock futures have fallen significantly so far, continuing a massive two-day sell-off that has wiped out more than $5.4 trillion in market value. The S&P 500 is approaching bear market territory, while the Dow fell 1,250 points in futures trading. The Nasdaq dropped 4.6%, and Asian markets followed suit, with the Japanese Nikkei opening down 8%. The sell-off follows the introduction of far-reaching tariffs by US President Donald Trump, which provide for broader and steeper 'reciprocal' tariffs on nearly 90 countries. A general import duty came into effect, triggering global reactions and recession fears. China retaliated with tariffs of 34% on all US goods, intensifying concerns of an ongoing trade war. The US oil price fell below $60 per barrel, and Bitcoin dropped 5.6% to below $79,000 after reaching a high of over $100,000 post-election. 'The brutal selling pressure of last week will continue on Monday as the market tells us that investors still lack clarity on the impact of tariffs and retaliatory measures and are concerned that economic growth is likely to slow to a complete standstill or recession,' said James Demmert of Main Street Research. JPMorgan estimates that the tariffs will cause an additional $600 billion in taxes annually, increase inflation by 2%, and put the likelihood of a recession in the US in 2025 at 60%. The Nasdaq officially entered bear market territory last week. The S&P 500 has dropped 17.4% since its peak in February and will open in bear market territory on Monday. Despite Trump's assurances and ongoing talks with foreign leaders, concerns persist. The bipartisan Tax Foundation estimates that households will pay an additional $2,100 annually as tariffs raise the average import tax from 2.5% to 19%. Some analysts, however, believe that the stock markets have hit a low point and may recover once investor panic subsides.