Wall Street Slumps as Trump Tariffs Fuel Recession Fears

U.S. stock futures were mostly flat Thursday evening after sharp losses on Wall Street, triggered by President Donald Trump’s sweeping new tariffs. As of 20:10 ET, S&P 500 Futures held at 5,434.25, Nasdaq 100 Futures edged up 0.1% to 18,699.0, and Dow Jones Futures rose 0.1% to 40,711.0.

Trump announced a universal 10% tariff on all imported goods effective April 5, alongside steeper, country-specific tariffs. China was hit hardest with total tariffs reaching 54%, while the EU, Japan, and India faced levies of 20% to 26%. A 25% tariff on imported automobiles also took effect April 3.

Markets tumbled on fears of a global trade war, potentially triggering supply chain disruptions and increasing the risk of a global recession. Investors also worried about rising costs for U.S. firms dependent on imports, possibly squeezing margins and fueling inflation.

The S&P 500 dropped 4.8% Thursday—its steepest fall since mid-2020. The Nasdaq Composite plummeted 6%, and the Dow Jones fell 4%. Tech and retail stocks took the brunt of the sell-off. Apple Inc. slid over 9% due to its reliance on Chinese manufacturing, while Nike Inc. plunged 14%. Boeing Co. fell 11%, Tesla lost 5.5%, and NVIDIA dropped 8%.

Amid economic uncertainty, markets are betting on increased Federal Reserve action. Traders now expect four rate cuts this year, up from three, according to the FedWatch tool. All eyes are on Friday’s U.S. payrolls report and Fed Chair Jerome Powell’s upcoming speech for signals on future monetary policy.

Keywords: Trump tariffs, stock market crash, US recession, global trade war, S&P 500 drop, Apple stock fall, Federal Reserve rate cuts, Dow Jones, Nasdaq, inflation fears.