Wall Street futures plunged Thursday morning after President Donald Trump unveiled a historic batch of reciprocal tariffs that could fuel an all-out trade war and batter economies around the world.
Futures tied to the Dow Jones Industrial Average lost 1,214 points, or 2.86%, by about 9 a.m. ET.
S&P 500 futures plummeted 3.6% and Nasdaq 100 futures dropped 4.2% after Trump revealed at least 10% tariffs on all imports, and much harsher rates on dozens of countries after the markets closed on Wednesday.
“This was the worst-case scenario for tariffs and were not priced into the markets, which is why we are seeing such a risk-off reaction,” Mary Ann Bartels, chief investment strategist at Sanctuary Wealth, said in a note.
“We’re expecting rocky markets for the next few months, and through the end of the first half of the year,” she added.
During an appearance on Fox News’ “Fox & Friends” Thursday morning, Vice President JD Vance said he isn’t going to “shy away” from the short-term pain the tariffs could have on Americans, but insisted the US needed a “big change.”
Shares in Apple – which produces the majority of its iPhones in China – plunged 7.5% premarket on after Trump hit Beijing with a stiff 34% rate, which brings the total to 54% when including earlier tariffs this year.
The tech giant has made moves to diversify its production away from China, expanding in Vietnam and India. But that effort may prove fruitless as Trump slapped 46% and 26% tariffs, respectively, on the two nations.
Other companies with China-reliant supply chains saw significant losses the morning after Trump’s “Liberation Day” announcement.
Shares in Intel fell 3.7% premarket, while Qualcomm slipped 4.7%.
Major tech stocks fell in an overall sell-off, with Nvidia plunging 5.9%, Tesla falling 5.9% and Amazon dropping 7.2%.
Sneaker companies like Nike, Adidas and Puma – many of which lean on Vietnam for production capacity – also tumbled Thursday morning. Nike suffered the largest loss, with its shares falling 13.7% premarket.
As Trump’s tariff plan rattled markets, the US Dollar Index slumped 2.1% as the euro gained 2.4%, on track for its biggest daily jump since 2015.
Citi was quick to recommend a long position in the euro, while its strategists forecast the US dollar sinking to its weakest level since October 2021.
US stock futures ticked up immediately after Trump’s announcement on Wednesday as some investors said the 10% baseline was better than a proposed 20% across-the-board levy.
But intense reciprocal duties on major trade partners and allies – including a 20% tax on the European Union, 24% on Japan and 17% on Israel – quickly stoked fears of inflation and a possible recession.
The 10% baseline is approximately triple what the average US tariff rate was before Trump took office in January, and will take effect at 12:01 a.m. on Saturday.
Specific reciprocal tariffs above the 10% rate will take effect after midnight on April 9, leaving wiggle room for some nations to negotiate with the US.
But that uncertainty over how tariff talks will play out could continue to spell trouble for the stock market.
“While we have made it past Liberation Day, there is still no clarity on tariffs, as President Trump has complete discretion on adjusting these tariffs and the ability to create carve outs as he sees fit,” David Bahnsen, chief investment officer at The Bahnsen Group, said in a note.
“For a stock market that was craving certainty, there is now even more ambiguity than before this announcement.”