Wall Street futures plunged on Monday, pointing to one of the sharpest three-day decline since the 1987 stock market crash, as U.S. President Donald Trump showed no signs of backing down on sweeping tariff plans despite global market sell-off.
At around 6 pm IST, futures linked to major U.S. indices were trading in the red. S&P 500 futures slumped 2.68 percent to 4,938.30. Earlier in the day, it slumped 4.93 percent, while Dow Jones Industrial Average futures sank 2.26 percent to 37,448.5. It declined 4.28 percent, or over 1,600 points, to 36,674.0, earlier in the day.
Tech-heavy Nasdaq 100 futures were the hardest hit, falling 2.92 percent to 16,890.4. Earlier today it was down 5.61 percent to 16,422.4, indicating a weak start for U.S. markets at the opening bell. US markets open at 7 pm IST.
Trump, over the weekend, said he would not roll back on the new tariffs until the U.S. trade deficit with China is addressed, triggering a sharp sell-off across global equity markets. China retaliated with 34 percent tariffs on all American goods, stoking fears of a full-blown trade war.
"The size and disruptive impact of U.S. trade policies, if sustained, would be sufficient to tip a still healthy U.S. and global expansion into recession,” Bruce Kasman, head of economics at JPMorgan told Reuters, who now sees a 60 percent chance of a downturn.
European shares were also trading in the red on April 7, with the pan-European STOXX 600 tumbling 6 percent, marking its worst single-day percentage fall since the COVID-19 pandemic-induced crash. Germany’s DAX index nosedived 6.6 percent.
Japan’s Nikkei 225 shed as much as 8.8 percent during the session, closing down 7.8 percent at 31,136.58 — its lowest since October 2023. All 225 constituents ended in the red. The broader Topix also sank 7.8 percent after dropping nearly 10 percent intraday.
In India, benchmark indices mirrored the global rout. The BSE Sensex and NSE Nifty 50 slumped about 5 percent in early trade, their steepest intraday losses since March 2020 when pandemic fears gripped markets. Both indices later trimmed some losses but were still down nearly 4 percent by afternoon.
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