U.S. stock futures witnessed a sharp decline on Monday morning, as investors remain concerned over President Trump’s firm stance on trade tariffs. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were down 3.92%, 3.2%, and 3.46%, respectively, at 4:36 a.m. EST, April 7.
This drop follows a two-day market sell-off due to worries about the ongoing trade dispute’s potential economic impact. Last week, the Dow Jones, the S&P 500, and the Nasdaq Composite (NDAQ) declined 7.9%, 9.1%, and 10%, respectively.
Adding to market concerns, China retaliated on Friday with a 34% tariff on all U.S. imports. Also, reports suggest that Canada and the European Union are considering similar measures. These events have raised fears of a long trade war that could hurt the global economy, especially in the U.S.
Several financial firms have revised their U.S. economic forecasts. For instance, Goldman Sachs (GS) now sees a 45% chance of a U.S. recession in 2025, due to stricter financial conditions, possible consumer boycotts, and rising uncertainty in policies.
Moving ahead, investors are awaiting some key economic reports to gain insight into the U.S. economy’s health. Today, the Consumer Credit data is set for release. Also, minutes of the Federal Reserve’s March FOMC meeting will be made public on Wednesday.
Further, the Consumer Price Index and the Producer Price Index reports will be released on Thursday and Friday, respectively.
On the earnings front, JPMorgan Chase (JPM), Wells Fargo (WFC), and BlackRock (BLK) are among the big banks that will kick off Q1 earnings on Friday. Also, Delta Air Lines (DAL) and CarMax (KMX) are scheduled to report earnings on Thursday.
Today, Levi Strauss (LEVI), Greenbrier (GBX), and Dave & Buster’s (PLAY) will be releasing their quarterly numbers.
Meanwhile, the U.S. 10-year treasury yield was down, floating near 3.959%. Simultaneously, WTI crude oil futures are trending sharply lower, hovering near $59.75 per barrel as of the last check.
Also, Bitcoin ($BTC-USD) dropped below $77,000 amid a broader market sell-off triggered by mounting trade tensions.
Elsewhere, European indices opened in the red today, extending a global sell-off that began last week after U.S. President Trump announced new tariffs.
Asia-Pacific Markets Tanked on Monday
Asia-Pacific indices continued their sharp decline today due to fears of a deepening trade war.
At the same time, Hong Kong’s Hang Seng Index was down 13.22%. Also, Japan’s Nikkei and Topix indices closed lower by 7.83% and 7.79%, respectively. Further, China’s Shanghai Composite and the Shenzhen Component indices declined 7.34% and 9.66%, respectively.
Interested in more economic insights? Tune in to our LIVE webinar.