Market Turmoil Looms as Trump's 'Liberation Day' Tariffs Approach

U.S. stock futures plunged as investors braced for the Trump administration's pending tariff announcement, raising fears of a global economic slowdown. Major indices faced significant losses, especially tech stocks. Goldman Sachs increased its U.S. recession probability and adjusted GDP forecasts. Economic data and Fed speeches are highly anticipated.

On Monday, U.S. stock index futures plunged as markets reacted to anticipated announcements of sweeping tariffs by the Trump administration, spurring fears of a global economic downturn. This potential economic shake-up saw global stocks fall, gold prices climb, and U.S. Treasuries surge after President Trump revealed plans for reciprocal tariffs affecting all nations.

By early morning, significant losses were observed across major U.S. indices, with the S&P 500 E-minis dropping 49 points (0.87%), the Nasdaq 100 E-minis plummeting 240 points (1.23%), and Dow E-minis decreasing by 244 points (0.58%). The year has seen increased selling pressure on U.S. stock markets, with impending tariffs threatening global economic stability and inflating concerns.

Coined 'Liberation Day' by Trump, the announcement is not expected to alleviate tariff concerns, according to Max Kettner, HSBC's Chief Multi-Asset Strategist. Meanwhile, Wall Street anticipates considerable quarterly declines, notably among tech stocks. As the CBOE Volatility Index reached recent highs, Goldman Sachs adjusted its U.S. recession risk and GDP growth forecasts amid looming tariff impacts. Economic data releases and Federal Reserve commentary are eagerly awaited this week.

(With inputs from agencies.)