US stock futures plummeted on Sunday evening. This indicates that market turmoil, which began last week, will continue once it begins on Monday, NBC News reported.
Close the market: retaliatory actions other countries expect to enact as US tariffs announced last week came into effect.
As of early Sunday, S&P 500 futures fell 4.5%. The high-tech Nasdaq futures also fell 4.5%, but the future of the Dow Jones Industrial Average fell 1,600 points due to volatile trading. (The futures market is the way traders move stocks when major exchanges are closed, and generally serves as an implicit measure of how stocks behave when the market opens at 9:30am on weekdays.)
Even Bitcoin prices, which showed signs of resisting a wide market slump on Friday, fell by 5%.
A decline means another savage day awaits investors. The losses wiped out about $6.6 trillion worth of the value last week, along with two days of free fall, representing the worst 48-hour period in market history.
Over the weekend, President Donald Trump made little intent to support his proposal, which is expected to rise by 79% in a country like China.
“This is an economic revolution, we win. We’ll hang,” Trump wrote on his Truth Social Platform on Saturday. “It’s not easy, but the end result is historic. We’ll make America great again!!!”
Trump never sent his own Sunday mail and instead reposted a link to other outlets offering support for his proposal.
In a release just before the futures trading begins Sunday, the White House released a short memo recognised the executive authorities for outlining Trump’s plans to end “a globalist economic destruction policy that shipped American jobs and industries abroad at the expense of American workers.”
The baseline 10% tariff came into effect on Saturday, with dozens of countries facing so-called “mutual tariffs” on Wednesday. China said Friday that it will impose a 34% tariff on all goods imported from the US from April 10th. This is the US tariffs are expected to rise on Chinese goods – from 20% to at least 54%.
A Goldman Sachs analyst wrote that “the customs Pandora’s box was opened” over the weekend, adding that US actions, particularly against China, were “a lot higher than the previous basic incidents of economists, and most investors were hoping for it.”
Commerce Secretary Howard Lutnick told CBS in an interview Sunday morning that the White House is not considering extending the tariff launch date.
“There’s no postponement. They’re definitely going to stay for days and weeks,” Rutnick said.
Trump posted on his social media platform “Why is this transaction going on to get Tiktok up and signing an enforcement order to run for another 75 days, as it requires more work to ensure that all necessary approvals are signed.”
“A military of millions of humans screw in small screws to make iPhones. That kind of thing comes to America and is automated,” he said. “American merchants – workers will fix it” robot.
Trump’s cabinet lined up behind him, but the overwhelming consensus between economists and well-known business executives is that tariffs are wrong. One source of surprising criticism came from Elon Musk, who was attacked by Peter Navarro’s senior White House adviser on Saturday for trade and manufacturing. Navarro shot Musk in an interview on Sunday, saying he was “simply protecting his interests.”
However, it is not clear that Musk’s interest is particularly different from many companies that rely on the modern global economic system and its cross-border supply chains. Tesla, alongside SpaceX, filed a warning to US trade representatives last month about the impact of tariffs and the retaliatory threat.
Ahead of the futures opening on Sunday night, Dan Ives, managing director of Wedbush Securities Financial Group, cut Tesla’s stock price forecast by 43% and Apple’s price forecast by 23%.
“The economic pain caused by these tariffs is difficult to explain, essentially bringing the US high-tech industry back to ten years, with China distilling first,” he wrote.
He added that the currently constructed tariffs “will unleash the economic Armageddon and with its trajectory will halt the world of American technology.”
There were other signs of gravity in the situation. Stan Druckenmiller, one of the most successful Wall Street investors in history, has published only five posts about X to revise another poster summary of the interview he gave.
“I don’t support tariffs above 10%.
Large market downdrifting comes in response to the scale of what Trump has proposed, rather than the tariff imposition established by most presidential administrations. Rather than simply taxing imports, Trump is trying to step forward the entire economic order based on global trade and cooperation, moving away from the US’s shift towards a service-oriented economy and relying on labor-intensive manufacturing.
The cost of returning to the export-oriented economy that Trump proposes is virtually immeasurable as it requires a relatively low standard of living for the majority of Americans for an indefinite period.
In the meantime, at least one Wall Street company has already predicted that unemployment rates will rise from the current level of 4.2% to 5.3%, with the economy poised to sign.
“The pinch from higher prices expected in the coming months could be more intense than the surge in inflation in the fathers as the average income rise is slowing,” a JPMorgan analyst wrote in a note to clients late Friday.
Minority leader Chuck Schumer, D-NY, spoke from the Senate to blow up the widespread White House tariffs imposed on almost every country and territory in the world. “Donald Trump uses tariffs in the stupidest way possible,” Schumer said Friday. “In fact, Trump slapped the penguins tariffs, but not Putin.”
They said they expect a significant pullback in consumer spending (which drives around 80% of the US economy) as a result of economic uncertainty.
Hedge fund investor Bill Ackman, avid supporter of Trump’s 2024 campaign, has posted a lengthy memo about X warnings about the outcomes for the economy if Trump fails to settle.
“The president has the opportunity to call timeouts on Monday and have time to carry out revisions to the unfair customs system,” he wrote. Alternatively, we should start digging as we are heading towards a self-induced economic core winter. The cooler head wins. ”
Steve Copak contributed.
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