Stock futures resume plunge as Trump remains defiant on tariffs

06 Apr 2025, 23:42 · The Fresno Bee

U.S. equity futures plunged lower in late, setting up the S&P 500 to open in bear market territory, as global markets continue their negative reaction to President Donald Trump's tariff regime and brace for a potential in the world's biggest economy.

Stocks suffered one of the biggest two-day losses in market history by the close of trading Friday, with the S&P 500 falling 322 points, or 5.97%, to peg the broadest measure of U.S. shares at the lowest since May of last year.

The Nasdaq, meanwhile, closed in bear market territory, defined as a 20% decline from its last record peak, having falling 982 points on Friday and 22.7% since December 16.

The Dow Jones Industrial Average, meanwhile, slumped 2,231 points, dragging the 30-stock average into a so-called technical correction, defined a 20% decline from a recent all-time high.

Collectively, U.S. stocks have lost more than $5.54 trillion in value since President Trump's 'Liberation Day' tariff event at the White House.

Trump told reporters in Washington that markets will "have to take their medicine" following one of the biggest two-day declines in market history Andrew Harnik/Getty Images

"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 New York-based Main Street Research.

"We are encouraged by reports that some 50 countries have reached out to the U.S. to initiate trade negotiations," he added. "Any negotiation will be supportive of the economy and markets. In its current state tariffs are likely to slow GDP by 0.5% so any reduction will be constructive. In the absence of tariff reduction, we believe the Fed will cut rates to offset the slowing effect of tariffs. They may do so unexpectedly if markets continue their decline."

Early indications suggest that selling its likely to continue, with futures contracts tied to the S&P 500 indicating an opening bell decline of 240 points, or 4.67%, whit the Dow primed for a 1,600 point plunge.

The tech-focused Nasdaq, meanwhile, is called 955 points lower, or 5.45%, with more big downside moves from megacap names such as Nvidia (NVDA) , Apple (AAPL) and Tesla (TSLA) expected.

In overseas markets, Japan's Nikkei 225 was marked 2.75% lower in early Tokyo trading, while the U.S. dollar index, which tracks the greenback against a basket of six global currencies, slumped 0.53% to 102.479.

Global oil prices were also in retreat, with WTI futures for May delivery, which are tightly-linked to U.S. gas prices, falling $2.25 to $59.74 per barrel, the lowest in four years.

President Trump, meanwhile, returned to Washington from a three-day trip to his Mar-a-Lago home, which included a multi-day golf tournament, in a defiant mood, having sent his senior advisers out to defend his tariff plans on Sunday television.

Treasury Secretary Scott Bessent told NBC's 'Meet the Press' that the administration would "hold the course" on tariffs, and described the market turmoil as an "adjustment process".

"He has created maximum leverage for himself," Bessent said. "I think we're going to have to see what the countries offer and whether it's believable."

So far, apart from reports of multiple countries offering to negotiate with President Trump, only Vietnam and Israel has confirmed remarks from their respective leaders tied to tariffs.

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This story was originally published April 6, 2025 at 4:42 PM.