U.S. stock futures were down sharply on Thursday morning after President Trump imposed substantial reciprocal tariffs, sparking fears of a global trade war and its potential to impact the U.S. economy. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were down 3.09%, 2.39%, and 2.86%, respectively, at 4:53 a.m. EST, April 3.
In the after-hours trading yesterday, companies with extensive global supply chains and high import dependencies were hard-hit. Nike (NKE) and Apple (AAPL) both declined about 7%. Also, retailers such as Five Below (FIVE), Dollar Tree (DLTR), and Gap (GAP) fell over 8%. Tech giants like Nvidia (NVDA) and Tesla (TSLA) were also down, reflecting a broad “risk-off” sentiment.
The market’s negative reaction stems from the realization that these reciprocal tariffs are far higher than initially anticipated for many countries. For example, the effective tariff rate for China, factoring in existing duties, is 54%.
According to Tai Hui, J.P. Morgan Asset Management’s APAC strategist, higher tariffs could raise inflation due to a lag in U.S. manufacturing and supply chains passing the extra costs to buyers.
He also warned that expensive imports may cut consumer spending, and businesses might delay investments amid uncertainty.
On the economic front, investors are looking ahead to Services Purchasing Managers’ Index (PMI) data, and Initial Jobless Claims report for the week ended March 29.
Moving to earnings releases, Lamb Weston (LW), Conagra (CAG), Guess (GES), and Acuity (AYI) are some of the companies slated to release their quarterly numbers today.
Meanwhile, the U.S. 10-year treasury yield was down, floating near 4.083%. Simultaneously, WTI crude oil futures are trending lower, hovering near $69.44 per barrel as of the last check.
Elsewhere, European indices opened lower today in a global sell-off after President Trump’s sweeping tariff announcement.
Asia-Pacific Markets Ended Lower on Thursday
Asia-Pacific indices plunged today as the newly announced tariffs raised concerns over global economic stability.
At the same time, Hong Kong’s Hang Seng Index was down 1.52%. Also, Japan’s Nikkei and Topix indices closed lower by 2.77% and 3.08%, respectively. Further, China’s Shanghai Composite and the Shenzhen Component indices declined 0.24% and 1.4%, respectively.
Interested in more economic insights? Tune in to our LIVE webinar.