US stock futures took a nosedive on Sunday evening, signaling a rough day ahead for Wall Street on Monday as uncertainty loomed over President Trump's swift tariff policy. Futures linked to the S&P 500 tumbled approximately 4%, while those tied to the Nasdaq dropped by 4.8%. Additionally, Dow Jones Industrial Average futures sank by 3.9%, equivalent to over 1,400 points. Oil prices also saw a decline of more than 3%.
Last week witnessed the worst performance on Wall Street since the pandemic began, witnessing a loss of over $5 trillion in value due to Trump's intention to impose significant tariffs on all US trade partners, leading to a massive sell-off. The Nasdaq Composite entered bear market territory on Friday, dropping more than 20% from its recent highs, while the S&P 500 approached this threshold with a 9% loss during the week. The Dow closed within correction levels after nearly an 8% drop.
Despite the panic on Wall Street and international backlash, Trump remained resolute in his stance. China retaliated with tariffs, while the EU prepared to respond in kind. The US initiated new baseline 10% duties on most trading partners, followed by additional tariffs on identified "bad actors" set to take effect starting Wednesday.
On Sunday talk shows, administration officials defended Trump's tariff strategies. Treasury Secretary Scott Bessent denied claims that these tariffs could push the US into a recession. However, JPMorgan forecasted a recession later this year, diverging from earlier growth predictions for the US economy.
As concerns surrounding the tariffs persisted, officials reported that over 50 countries had initiated negotiations, highlighting logistical challenges as the tariffs were scheduled for implementation. Commerce Secretary Howard Lutnick stated that the tariffs would remain in place for the foreseeable future.
Over the weekend, Trump remained relatively quiet, sharing golf-related videos while encouraging Americans to persevere. In response to a video suggesting Trump intentionally caused the stock market crash, economic adviser Kevin Hassett clarified that the President's aim was to support American workers, not to trigger market upheaval.