President Trump has instigated changes in the stock market, causing the beast, meaning the market, to show enthusiasm in surpassing a significant level on the S&P 500 (^GSPC). This was triggered by the imposition of a 10% baseline tariff on various countries starting from April 5. Countries perceived as engaging in unfair trade practices will face additional tariffs. Some of these nations are key business partners for major US companies like Apple (AAPL), Nike (NKE), and Walmart (WMT), with China, Vietnam, and Japan facing substantial tariff rates.

Markets have reacted negatively to this development, with the Dow Jones Industrial Average (^DJI) plunging by over 1,000 points in premarket trading. The S&P 500 and Nasdaq Composite (^IXIC) are both down by 3%, while leading stocks such as Apple and Nvidia are seeing drops of 7% and 6% in premarket trading, respectively.

Investors are closely monitoring the S&P 500, especially its closing low of 5,527.50 on March 13, as an indicator of post-tariff sentiments. The index is positioned to open at 5,538, and breaching the March low could lead to further negative market sentiments.

Market experts are analyzing the impact of the new tariffs and anticipate that if the S&P 500 significantly drops below the mid-March low, it could plummet to the 4,900-5,300 range, prompting a notable decline in stocks. Despite this cautious sentiment, some analysts believe that a sharp market decline could pave the way for a temporary market bottom as all selling pressures are exhausted.