Wall Street Futures Tumble as Tariffs Spark Market Mayhem
The US Market is bracing for further turmoil as futures linked to the Dow Jones, S&P 500, and Nasdaq fell sharply on Sunday night. continuing a devastating two-day sell-off that erased over $5 trillion in investor wealth. Dow futures dropped more than 1,600 points at their lowest, with the S&P 500 and Nasdaq futures shedding over 4% each. If these losses continue into regular trading, the S&P 500 will join the Nasdaq and the Russell 2000 in bear market territory—defined by a 20% decline from recent highs.
The downturn comes on the heels of President Donald Trump’s expansive tariff policy, which has sent shockwaves through global markets. High-profile investors like Bill Ackman and Stanley Druckenmiller criticized the administration’s trade strategy, calling it a “mistake.” The Trump administration, however, remains steadfast. “Sometimes you have to take medicine to fix something,” the president remarked, implying that short-term pain is necessary for long-term gains.
The bond market reacted strongly to the chaos, with the U.S. 10-year yield hovering near 4%, while the 2-year yield fell to its lowest point since 2022. Investors flocked to safe-haven assets such as gold, the Japanese yen, and the Swiss franc. Meanwhile, oil prices dropped to a four-year low, reflecting deepening concerns about a global economic slowdown.
Asian and Crypto Markets Mirror US Panic
The global ripple effect impacting the US Market was evident as Asian markets opened to steep losses on Monday, heightening investor concerns. Japan’s Nikkei 225 dropped over 6%, triggering circuit breakers that temporarily halted futures trading. South Korea’s Kospi fell 5%, while Australia’s indices slid into correction territory. Hong Kong’s Hang Seng plunged 10%, and Taiwan’s Taiex tumbled nearly as much—led by a 10% fall in Taiwan Semiconductor Manufacturing Co. (TSMC) shares.
China, returning from a long holiday, is bracing for further turbulence after announcing a retaliatory 34% tariff on all U.S. imports. This move caused a sharp drop in Chinese stocks listed in the U.S., which fell nearly 9% on Friday. The escalating trade war has raised fears of prolonged supply chain disruptions and slowing economic growth across Asia.
Cryptocurrencies were not spared in the sell-off. Bitcoin dropped nearly 7% to $77,077, while Ethereum hit $1,538—levels not seen since late 2023. Though both tokens recovered slightly, the steep intraday drops underscored the prevailing risk-off mood.
Experts Warn of Extended Volatility Amid Policy Stalemate
Financial experts anticipate more volatility in the days ahead. “We expect the market fallout from the tariffs to continue this week,” said Win Thin of Brown Brothers Harriman. “Given the administration’s messaging, equity markets are likely to keep selling off.” Hedge fund manager Jun Bei Liu noted the current climate shows signs of “proper capitulation,” but also sees long-term buying opportunities for non-trade-exposed firms.
Despite hints of a minor recovery in the US Market early Monday, with Dow futures reducing losses to under 800 points, overall sentiment remains deeply bearish. Investors are closely watching Washington for any signs of policy shifts, but Trump’s economic team has shown no intention of retreating. Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick reiterated the administration’s firm stance, signaling that more market turbulence could lie ahead.
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