US stock futures sank as Wall Street girded for President Trump’s massive tariffs on key US trading partners to take full effect starting Wednesday.
Futures tied to the S&P 500 (ES=F) dropped down 1.8%, while those on the tech-heavy Nasdaq (NQ=F) fell 1.9%. Dow Jones Industrial Average futures (YM=F) sunk 1.5%.
Trump’s so-called “reciprocal” tariffs — the announcement of which stunned markets last week — are in full effect as of 12:01 a.m. Wednesday. They continue to bring chaos to Wall Street, as stocks ended up on another roller-coaster ride of a session that ended in a sizable U-turn lower. The S&P 500 (^GSPC) crept closer to a bear market, while the Nasdaq Composite (^IXIC) and Dow (^DJI) ended the session at their lowest levels since January 2024.
As of 11:38:05 PM EDT. Market Open.
ES=F YM=F NQ=F
China is set to get hit with whopping 104% duties, while Vietnam, Japan, India, and more also stand to face massive tariff hikes. Most US trading partners already face at least a 10% “blanket” tariff that went into effect over the weekend.
The US-China escalation took the spotlight on Tuesday. China vowed to “fight to the end” if necessary, while the White House confirmed plans to jack up tariff rates on the country to 104%, making good on a Trump threat after China retaliated.
Read more: Live updates on Trump tariffs fallout
Traders took in some other signs of optimism, however, which had sent stocks soaring earlier in Tuesday’s session. Treasury Secretary Scott Bessent on Tuesday said he believed “we can end up with some good deals.” Japan, facing a 24% tariff, appeared headed for the front of the line for talks. Trump also touted coming talks with South Korea after having a “great call” with its acting prime minister.
Meanwhile, first-quarter earnings season begins in earnest this week, with Delta (DAL) closely watched Wednesday after slashing its outlook last month, citing economic uncertainty. Investors are also gearing up for the release of the Consumer Price Index on Thursday, which will provide a signal of where inflation was headed before Trump’s tariffs went into full force.
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