from CNBC
Stock futures dropped to kick off a new trading month after President Donald Trump hit several key U.S. trading partners with tariffs, raising fears that a full-blown trade war would disrupt global supply chains, reignite inflation and slow the economy.
Futures tied to the Dow Jones Industrial Average fell 616 points, or 1.4%. S&P 500 futures dropped 1.6%, while Nasdaq-100 futures lost 1.8%. Futures on the Russell 2000, the small-cap benchmark, lost 2.1%. The Cboe Volatility Index, Wall Street’s fear gauge, briefly spiked above 20 before trading around 19.
The impact from the new tariffs ricocheted around the globe in a risk-off move:
- Major European equity markets sunk with Germany’s Dax benchmark off by nearly 2%.
- Bitcoin tumbled to around the 95,000 level from above $102,000 before the weekend. Ether lost 12%.
- The ICE U.S. Dollar Index, a measure of the U.S. dollar versus several currencies, leaped 1%.
- WTI crude oil jumped 2% on concern of supply disruptions in North America from the new tariffs.
President Donald Trump on Saturday
slapped a 25% tariff on goods from Mexico and Canada. He also placed a
10% levy on imports from China. Energy imports from Canada received a
lower 10% tariff. Canada responded with retaliatory tariffs of its own,
while Mexico said it would explore levies on U.S. imports. The Chinese
government, meanwhile, said it would file a lawsuit with the World Trade
Organization.
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