US markets continue to trade in red amidst Trump tariff escalation; Nasdaq down 5%

Markets worldwide remain on edge as investors assess the impact of these sweeping tariffs.

US markets continued to see selling pressure on April 3 a day after President Donald Trump announced broad-based tariffs on global trade partners. The broad market index fell nearly 4 percent, its worst trading day since September 2022. The Dow Jones Industrial Average also fell 3.3%, while the Nasdaq Composite fell 5%.

On April 4, President Trump unveiled a new set of tariffs affecting 185 countries, with the highest reciprocal tariffs imposed on Vietnam, China, the EU, Taiwan, and Japan. India faces a 27 percent reciprocal tariff. However, exemptions apply to specific sectors, including semiconductors, lumber, copper, gold, pharmaceuticals, energy, and certain minerals unavailable in the US.

Some nations, including the EU and China, have vowed to retaliate. “We are prepared to respond,” said European Commission President Ursula von der Leyen.

On the S&P, gainers included First Solar Inc, Lamb Weston and Molena Healthcare. While shares for Williams Sonoma, Ralph Lauren, Best Buy and HP saw declines. On the Dow Jones, losers include Nike, Dow Inc, Goldman Sachs and American Express.

Asian markets react

At the receiving end of most of the major tariff announcements, Asian markets fell with the benchmark Nikkei 225 closing nearly 3 percent lower at 34,735.93. The Kospi index also closed 0.76 percent lower at 2,486.70. Mainland China’s CSI 300 fell 0.59 percent and closed at 3,861.50. Hong Kong’s Hang Seng Index fell 1.52 percent to end the trading session at 22,849.81.

On the other hand, India's Sensex was down 322.08 points or 0.42 percent at 76,295.36, and the Nifty was down 82.25 points or 0.35 percent at 23,250.10.