A merchant works on the prosecution on the New York Stock Exchange (NYSE) in New York, United States, April 3, 2025.
Brendan McDermid | Reuters
US stock contracts fell on Sunday evening while the White House remained provocative even after a two -day historical stock market routing that followed the deployment of President Donald Trump shocking rate rate on most of the main American trade partners.
Dow Jones Industrial Middle Tower dropped by 1,531 points, or 4% Sunday evening, pointing to another brutal session on Monday. Future S&P 500 lose 4%. Future Nasdaq-100 lost 4%.
(Connect to CNBC on Sunday at 7 p.m. HE for a special report live on the American markets.)
This follows an erasure of the market to end last week:
- The DOW displayed consecutive losses of more than 1,500 points for the first time, including a bombing of 2,231 points on Friday.
- The S&P 500 fell 6% on Friday for its worst performance since the pandemic trigger in March 2020. The reference lost 10% in two days, pushing it more than 17% below its February record, dangerously close to a 20% bear market.
- The Nasdaq Composite entered a lower market on Friday – down 22% compared to its record – after losses Thursday and Friday by almost 6% each.
Investors did not receive the news during the weekend that they wanted the Trump administration to have successfully negotiations with countries to reduce prices, or at the very least, was considering delaying all the so-called reciprocal rates which were to take effect on April 9. Instead, the president and his main advisers have played the sale:
- Trump posted on Truth Social on Saturday so that people “hang hard” and that it was an “economic revolution”.
- Commerce secretary Howard Lunick told CBS News that the prices would not be postponed. “The prices arrive … They will certainly stay in place for days and weeks.”
- The secretary of the Treasury, Scott Bessent, spoke to NBC News that more than 50 countries have approached the administration for negotiations, but have warned “they have been bad actors for a long time, and this is not the kind of thing you can negotiate for days or weeks”.
Investors were first surprised by the magnitude of certain rates applied to business partners who seemed to be based on a formula without valid justification based on established economic theory. They were more shaken when China decided to retaliate first with a rate of 34% on all American imports, instead of negotiating.
Future Dow
“Trump’s release day launched last Wednesday on the days of annihilation on Thursday and Friday, the vigilant stock markets giving an expensive boost to the reign of Trump prices,” Ed Yardeni, president and chief investment chief of the research of Yerdeni, in a note to customers on Sunday.
While the administration said that at least 50 nations had contacted negotiations, Canada and the European Union planned to follow the example of China and the preparation of reprisals against American Vietnam have already proposed to reduce prices in the United States, according to Trump, but they seemed to be the exception until now.
The fears grew up in Wall Street that the sale would feed on itself with hedge funds forced to sell shares and other risky assets to collect funds and respond to margin calls. And there were concerns that the drop in the fast stock market would lead to a vicious circle that would strike the American consumer even before the prices have an impact.
“Pliping stock prices, because the release day increases the chances that the effect of negative wealth that results from it depressing consumption spending, which increases the chances of a recession, which, in turn, depresses the prices of equities,” said Mardeni.
The price of Bitcoin, which is generally negotiated as another major technological actions but which had jostled the wider week of the market market, dropped $ 80,000 on Sunday. Apart from a few briefs below this floor, the flagship cryptocurrency has largely exchanged above this year.