• U.S. stock futures declined again Monday morning, signaling a potential third consecutive day of losses following a historic two-day market rout triggered by President Trump’s sweeping tariff announcements.
• The S&P 500 dropped more than 10% over Thursday and Friday, with Friday marking its worst single-day performance since the onset of the COVID-19 pandemic in March 2020. The Nasdaq Composite plunged nearly 6% on both days, officially entering bear market territory. The Dow Jones Industrial Average suffered back-to-back drops of over 1,500 points for the first time in history.
• The first round of President Trump’s new tariffs took effect on Saturday. A broader and more consequential wave of tariffs targeting numerous countries and products is set to begin on Wednesday.
• The European Union, China, and Canada are preparing retaliatory measures. Treasury Secretary Scott Bessent downplayed economic concerns, while President Trump reiterated that short-term pain is necessary for long-term gain.
• European stocks continued their sharp descent on Monday, extending the global market rout. Markets across Asia tumbled Monday, deepening last week’s losses. Japan’s Nikkei 225 sank to an 18-month low, and other Asian indices also saw significant drops.
• U.S. Treasury yields fell again on Monday due to concerns about an economic slowdown.
• Gold prices stabilized after an earlier dip, supported by safe haven demand. Oil extended its recent slide to its lowest levels since April 2021. Bitcoin also fell as risk sentiment deteriorated.
• Investor anxiety deepened Monday, with the VIX surging. Safe havens saw inflows. Traders are closely watching the political landscape and upcoming economic data. Should the S&P 500 fall another 4% Monday, it would mark a historically severe three-day decline.

U.S. stock futures declined again Monday morning, signaling a potential third consecutive day of losses following a historic two-day market rout triggered by President Donald Trump’s sweeping tariff announcements. The S&P 500 dropped more than 10% over Thursday and Friday, with Friday marking its worst single-day performance since the onset of the COVID-19 pandemic in March 2020. The Nasdaq Composite plunged nearly 6% on both days, officially entering bear market territory—defined as a decline of more than 20% from a recent peak. Meanwhile, the Dow Jones Industrial Average suffered back-to-back drops of over 1,500 points for the first time in history.

Despite the market turmoil, the Trump administration has maintained a defiant tone. In a post on Truth Social late Friday, President Trump acknowledged the difficulties ahead, stating “it won’t be easy” and encouraging Americans to “hang tough.” His administration’s aggressive tariff stance and the expected retaliatory measures from other nations have cast a long shadow over investor sentiment, driving sharp global sell-offs that extended into the new trading week.

According to estimates from British asset manager Schroders, Trump’s tariffs have raised the effective U.S. tariff rate by 17.6 percentage points to a total of 25.3%. The firm projects that this will lead to a 2% increase in U.S. consumer prices and reduce GDP growth by approximately 0.9%. The growing economic risks have prompted analysts to revise their outlooks. Goldman Sachs on Monday raised its estimate of a U.S. recession over the next 12 months to 45% and lowered its oil price forecast. Citi and Morgan Stanley also revised their Brent crude projections downward, while JPMorgan said last week that it sees a 60% probability of a recession both in the U.S. and globally.

US Market Previous Day:

The stock market endured another brutal session on Friday, as fears of a global trade war intensified following China’s retaliatory tariffs on U.S. goods. The selloff, sparked by escalating trade tensions between Washington and Beijing, fueled growing concerns that President Donald Trump’s tariff policies could tip the global economy into recession.

Friday’s losses marked a historic downturn. The Dow Jones Industrial Average plunged 2,231.07 points, or 5.5%, closing at 38,314.86 — its steepest one-day drop since June 2020, during the depths of the COVID-19 pandemic. This came on the heels of a 1,679-point decline on Thursday, making it the first time the Dow has lost more than 1,500 points on consecutive days.

The S&P 500 dropped 5.97% to close at 5,074.08, its worst single-day performance since March 2020. The benchmark index had already fallen 4.84% on Thursday and is now down more than 17% from its recent peak, approaching bear market territory. The Nasdaq Composite — heavily weighted toward tech stocks with significant exposure to China — tumbled 5.8% to 15,587.79 on Friday, extending its nearly 6% loss from the previous session. With a total decline of over 22% from its December high, the Nasdaq has officially entered a bear market.

The selling was broad and intense, with only 14 constituents of the S&P 500 managing to end the day in positive territory. All major indexes closed at session lows, underscoring the depth of investor anxiety.

(Source: TradingView.com)

Technology stocks were at the forefront of the collapse. Apple shares slid 7%, capping a staggering 13% loss for the week. Nvidia, viewed as a bellwether for artificial intelligence and semiconductor demand, fell 7%, while Tesla dropped 10%. All three companies have substantial exposure to Chinese markets, making them particularly vulnerable to retaliatory tariffs from Beijing.

Outside of tech, major exporters like Boeing and Caterpillar were also battered, falling 9% and nearly 6%, respectively. With trade tensions escalating and no clear resolution in sight, investor sentiment continues to deteriorate, raising the likelihood of further market volatility ahead.

US Futures Remain in Red:

• Dow Jones Industrial Average futures declined by 2.67%
• S&P 500 futures showed losses of 2.77%
• Nasdaq Composite futures lead the pack with losses of 2.81%.

Pre-Market Movers

• Tesla (NASDAQ:TSLA) stock fell 6.5%, extending its losses in 2025 to over 40%, as the electric vehicle manufacturer faces ongoing supply chain challenges stemming from new tariffs. CEO Elon Musk’s political involvement has also sparked global protests and boycotts, adding further pressure.
• Apple (NASDAQ:AAPL) dropped 6.3% after Wedbush cut its price target for the company, citing mounting concerns over the impact of tariffs on production costs and weakening consumer demand.
• Banking stocks also saw notable declines. JPMorgan (NYSE:JPM) slid 3%, Morgan Stanley (NYSE:MS) dropped 3.8%, and Goldman Sachs (NYSE:GS) fell 3.5% amid concerns that the escalating trade war could dampen consumer confidence, reduce spending, and curb loan growth and dealmaking activity.
• Eli Lilly (NYSE:LLY) declined 4.2% after the Trump administration chose not to expand coverage for weight-loss drugs in its finalized Medicare and Medicaid policy updates.
• MicroStrategy (NASDAQ:MSTR) slumped 10% as Bitcoin dropped sharply during a broader wave of risk aversion. The company, known as the largest corporate holder of Bitcoin, remains highly sensitive to swings in the digital asset’s price.
• JetBlue (NASDAQ:JBLU) shares were down 4.3%, mirroring broader market weakness despite Raymond James upgrading its rating on the airline to “outperform” from “market perform,” citing improved fundamentals.
• Starbucks (NASDAQ:SBUX) fell 3.6% after Baird downgraded the stock to “neutral” from “outperform,” citing caution amid current market uncertainty.
• Viatris (NASDAQ:VTRS) rose 2% after the pharmaceutical company announced it would pay up to $335 million over nine years as part of a nationwide opioid settlement agreement.
• WK Kellogg (NYSE:KLG) dropped 2.8% following news that Texas regulators had launched a probe into the company, alleging potential violations of state laws related to advertising its products as “healthy.”

Key Tariff News:

The first round of President Donald Trump’s new tariffs took effect on Saturday, imposing 10% duties on goods from countries including Great Britain, Colombia, and Australia—along with some of their uninhabited territorial islands, home mostly to penguins. While these initial duties drew modest concern, a much broader and more consequential wave is set to begin on Wednesday. The upcoming tariffs, which have rattled Wall Street, will target imports from dozens of countries and regions including China, Vietnam, and the European Union. Rates will range from 11% to as high as 50%, impacting a wide spectrum of products such as apparel, toys, appliances, electronics, and food.

Commerce Secretary Howard Lutnick confirmed that the White House will not delay the April 9 implementation of these reciprocal tariffs. “They are definitely going to stay in place for days and weeks,” Lutnick said Sunday, emphasizing that “the president needs to reset global trade,” citing America’s persistent trade deficit. Over the weekend, reports surfaced that the European Union is preparing its own tariffs on up to $28 billion of U.S. imports in response. China and Canada also announced retaliatory measures last week, marking a rapid escalation in global trade tensions.

In the face of growing market anxiety and mounting fears of a recession, Treasury Secretary Scott Bessent sought to reassure the public. On Sunday, he downplayed concerns about retirement portfolios and broader economic fallout, insisting that the Trump administration is “building the long-term economic fundamentals for prosperity.” Bessent called it a “false narrative” that Americans nearing retirement should be overly worried, noting that “most Americans don’t have everything in the market.”

Following last week’s sharp market selloff, President Trump and his economic team reiterated that short-term pain is necessary for long-term gain. “I don’t want anything to go down, but sometimes you have to take medicine to fix something,” Trump told reporters on Sunday. While many investors are holding out hope that Trump will strike deals with key trading partners before the tariffs take full effect, the president was noncommittal. He did say he is “willing to deal with China,” but stressed that Beijing must address its trade surplus with the U.S. It remains unclear whether Trump expects China to eliminate the entire $295 billion goods trade deficit before he considers rescinding the looming 34% tariff.

Earnings Season/Company News:

Warren Buffett’s Berkshire Hathaway proved to be a rare point of resilience in a bruising week for global equity markets, with the cash-rich conglomerate suffering softer losses than the broader S&P 500. Investors flocked to the relative safety of Berkshire’s diversified and domestically oriented portfolio, which includes large holdings in manufacturing, energy, and retail businesses. Despite the market turbulence, Berkshire remains up approximately 8% year-to-date.

Global Market Trends:

European stocks continued their sharp descent on Monday, extending the global market rout triggered by President Donald Trump’s escalating tariff measures. The pan-European Stoxx 600 was down 4% by midday in London, with all major sectors and national indices posting losses. Germany’s DAX, which had earlier flirted with a 10% drop, was last seen 4.2% lower. This comes after the Stoxx 600 dropped 8.4% last week, marking its worst weekly performance in five years. Over the past decade, only the initial selloff during the Covid-19 pandemic in early 2020 has been more severe.

Markets across Asia tumbled Monday, deepening last week’s losses as trade war fears intensified. Hong Kong led regional declines, with the Hang Seng Index plunging 13.22% to 19,828.30 and the Hang Seng Tech Index collapsing 17.16% to 4,401.51. In mainland China, the CSI 300 dropped 7.05% to 3,589.44—its largest one-day fall since October. The selloff followed Beijing’s retaliatory tariffs, which further stoked investor fears of a prolonged global economic standoff.

Qi Wang, CIO at UOB Kay Hian Wealth Management, told CNBC that in the near term, markets will continue to trade on these policy reactions. He noted the importance of upcoming responses from the European Union, which has signaled it is preparing countermeasures of its own. Wang added that American political sentiment is becoming a factor too, as consumer frustration grows and Trump’s approval rating shows signs of strain.

Japan’s markets faced a dramatic session. The Nikkei 225 sank 7.83% to 31,136.58—an 18-month low—while the Topix index slid 7.79% to 2,288.66. Earlier, Japanese futures trading was halted after circuit breakers were triggered due to steep losses. In South Korea, the Kospi index plunged 5.57% to 2,328.20, while the Kosdaq dropped 5.25% to 651.30.

Australia’s S&P/ASX 200 fell 4.23% to 7,343.30, entering correction territory with a total 11% drop from its February high. The index has now erased all gains for the year.

Debt Market:

(Source: TradingView.com)

U.S. Treasury yields fell again on Monday due to concerns about an economic slowdown triggered by President Donald Trump’s tariffs. This led traders to anticipate further rate cuts from the Federal Reserve. The 10-year Treasury yield increased by 7 basis points to 4.06%, while the 2-year Treasury yield decreased by about 1 basis point to 3.658%, having earlier reached its lowest level since September 2022.

Commodities and Other Assets:

Gold prices stabilized Monday after dipping to a three-week low early in the session, as investors took profits following last week’s string of record highs. Still, the yellow metal remained near historic levels, supported by persistent safe haven demand amid heightened global trade tensions and growing fears of a worldwide recession. Prices hit an all-time high of $3,167.57 on Thursday, fueled by geopolitical uncertainty, strong central bank purchases — including a fifth consecutive monthly addition by China’s central bank — and speculation around a potential interest rate cut from the U.S. Federal Reserve as early as May.

Oil extended its recent slide, with Brent and WTI both dropping more than 2% Monday to their lowest levels since April 2021. Last week, the benchmarks lost over 10% each, with Friday alone seeing a 7% plunge after China’s retaliatory tariffs further escalated the trade conflict. The possibility of a recession has intensified demand concerns, while OPEC+ prepares to increase supply. Saudi Arabia’s weekend decision to slash May crude prices for Asia to a four-month low further pressured prices.

(Source: TradingView.com)

Bitcoin fell below the $79,000 mark Sunday and continued lower Monday, extending its 2025 decline to 15% as risk sentiment deteriorated. Crypto markets, known for their volatility, were hit hard by the growing aversion to speculative assets. The move was exacerbated by reports of approximately $160 million worth of Bitcoin being transferred to crypto exchange Kraken, a signal that a large investor may be preparing to sell. With no immediate crypto-specific catalysts, the asset continues to track broader risk sentiment and equity markets.

Market Sentiment:

Investor anxiety deepened Monday as fears mounted that the sell-off could spiral further. Margin calls have reportedly triggered forced selling across hedge funds and other leveraged players, intensifying downward pressure on equities and risk assets. The CBOE Volatility Index (VIX) — often referred to as Wall Street’s fear gauge — surged to 50, a level rarely reached outside of bear markets.

Safe havens saw inflows, with the Japanese yen, Swiss franc, and government bonds drawing interest, alongside alternative assets perceived as relatively insulated from market turmoil.

Traders are now closely watching the political landscape for signs of de-escalation. Any indication that President Trump may reconsider or renegotiate the new tariffs could shift sentiment. Conversely, retaliatory moves from other nations remain a major risk factor. Key economic data due later this week — including CPI and jobless claims on Thursday, and PPI on Friday — could further shape expectations around recession risk and potential Fed policy responses.

Should the S&P 500 fall another 4% Monday, it would mark the first time since the Great Depression in 1933 that the index posted three consecutive daily losses of that magnitude. Only twice before has the benchmark experienced three straight 4%-plus declines — both during the Depression — underscoring the severity of the current market turmoil.