US stock futures plunged Sunday evening after two sessions of sell-offs that wiped away over $5.4 trillion in market value. Stocks were set to open sharply lower Monday, putting the S&P 500 on the precipice of a bear market — a decline of 20% from its peak and an ominous sign for investors and perhaps the broader economy.
Dow futures were down 1,500 points, or 4%. S&P 500 futures fell 4.3%, while Nasdaq futures tumbled 4.7%.
The price of US oil fell more than 3%, sinking below $60 a barrel for the first time since April 2021. Oil prices have been in a freefall as investors fear tariffs could plunge the global economy into a recession that would sap demand for flights, shipments, transportation and travel — all activities that require fuel.
Bitcoin joined the declines, too — falling 5.6% to $78,736.93. Bitcoin had surged above $100,000 shortly after Trump was elected in the hopes that he’d help boost support for cryptocurrencies.
The massive declines in futures follow the worst two-day stretch for stocks in five years – since the pandemic. The markets have rejected President Donald Trump’s massive tariff regime, some of which went into effect early Saturday morning and even larger tariffs are set to launch on Wednesday morning. China retaliated fiercely Friday, imposing a 34% tariff on all US goods, raising fears of an escalating and damaging trade war.
“Last week’s brutal selling pressure is set to continue on Monday, as the market is telling us that investors still lack clarity on the implications of tariffs, tariff retaliation and are worried that economic growth is likely to slow to a complete stall or recession,” said James Demmert, chief investment officer at Main Street Research.
A universal tariff went into effect Saturday after Trump signed an executive order earlier in the week requiring a baseline tax for all imports. The announcement sparked an outcry from America’s trading partners — allies and foes alike — along with American businesses, investors and consumers.
On Wednesday, America will impose significantly higher “reciprocal” tariffs on nearly 90 countries that have the highest trade imbalances with the United States.
Trump has also put in place tariffs on autos, steel and aluminum. He placed 25% tariffs on certain goods from Canada and Mexico.
And more tariffs could be on their way, too: Tariffs on auto parts are set to go into effect no later than May 3. And Trump has also threatened tariffs on lumber, pharmaceuticals, copper and microchips, among other products.
“The tariffs are coming. (Trump) announced it, and he wasn’t kidding. The tariffs are coming. Of course they are,” Commerce Secretary Howard Lutnick told CBS’s “Face the Nation” on Sunday.
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