Stock Futures Plunge as Investors React to Trump’s Tariffs
US stocks plunged in after-hours trading Wednesday as investors digested President Donald Trump’s decision to impose sweeping tariffs that could escalate a growing trade war and upend the global economy.
Dow futures plummeted more than 1,100 points, or 2.7%. S&P 500 futures sank 3.9%. Futures tied to the Nasdaq 100 plunged 4.7%.
US stocks closed higher Wednesday afternoon ahead of Trump’s announcement on tariffs, but a selloff began as he unveiled his plan, holding up a chart that depicted how rates would increase depending on the country.
Wall Street had been nervous about Trump’s tariffs, though some analysts expected stocks could rally if the tariff announcement was lighter than feared. Those hopes were quickly dashed as Trump unveiled baseline 10% tariffs on all imports, plus higher rates for specific countries.
“Trump is enacting a very aggressive tariff policy, far more aggressive than most investors thought possible six months ago,” said Jed Ellerbroek, portfolio manager at Argent Capital. “Painful times for stock market investors.”
“While the market was positioned to bounce on a ‘less bad than expected’ tariff announcement, there is no way to spin today’s news as positive for the economy or stock market,” said Ellerbroek.