Investors flee U.S. stocks as markets react sharply to Trump’s tariff plan
Global markets reacted sharply and swiftly after President Donald Trump revealed his much-anticipated tariff plans Wednesday, with investors fleeing U.S. stock indexes and companies that rely on global supply chains seeing their stocks plummet.
S&P 500 futures, which indicate where it will likely open on Thursday, plunged 3.5%. Nasdaq 100 futures sold off by more than 4.3%, and Dow futures slid about 1,000 points or 2.3%.
Those indices just endured their worst quarter in years in large part because of growing concern about the economic impacts of Trump’s expected tariff plan.
But initial market indications early Wednesday evening were that many investors had expected Trump’s tariffs to be far less expansive. In addition to a flat 10% tariff on all trading partners, Trump announced reciprocal tariffs that would tax many trading partners at levels in excess of 20%.
“President Trump just finished his tariff speech at the White House and we would characterize this slate of tariffs as ‘worse than the worst case scenario’ the Street was fearing,” wrote Dan Ives, an analyst at the investment firm Wedbush Securities, in a note sent Wednesday. [Continue reading…]