U.S. stock futures continued to drop on Friday morning, reflecting market concerns after President Trump announced new tariffs, which led to a sell-off in U.S. equities yesterday. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were down 0.43%, 0.84%, and 0.66%, respectively, at 4:23 a.m. EST, April 4.
The major indices suffered substantial losses on Thursday. The Dow Jones, the S&P 500, and the Nasdaq Composite (NDAQ) declined about 4%, 4.8%, and 6%, respectively. The Dow and the S&P 500 both saw their largest single-day losses since June 2020, while the Nasdaq faced its worst day since March 2020.
Also, the Russell 2000, which represents small-cap stocks, has entered a bear market with a drop of over 20% from its recent peak.
Further, the Magnificent Seven stocks were particularly hard-hit, losing over $1 trillion in combined market value.
The market reacted strongly to Trump’s plan for a 10% tariff on all imports, with higher rates for some countries. This raised fears of retaliation by other nations, which could hurt global trade and slow down growth. Also, Trump’s recent signals about openness to trade negotiations have increased market uncertainty.
Investors are now turning their attention to the March Jobs report for insights about the health of the U.S. labor market. This data will influence the Federal Reserve’s monetary policy decisions. Economists expect 140,000 new nonfarm payrolls and an unchanged unemployment rate of 4.1%.
Meanwhile, the U.S. 10-year treasury yield was down, floating near 3.948%. Simultaneously, WTI crude oil futures are trending lower, hovering near $65.30 per barrel as of the last check.
Elsewhere, European indices opened lower today as investors grappled with the impact of the recently announced U.S. tariffs.
Japanese Market Ended Lower on Friday
Japan’s stock indices fell sharply on Friday, mirroring Wall Street’s plunge. Investors across the region remain cautious as global markets face the economic fallout of Trump’s aggressive trade measures.
Japan’s Nikkei and Topix indices closed lower by 2.75% and 3.37%, respectively.
Investors should note that the Hong Kong and China markets were closed today for the Qingming Festival.
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