Trade Tensions Trigger Market Tumble

U.S. stock futures fell sharply following President Trump's new tariffs, heightening fears of a trade war-induced recession. As global markets slumped, tech giants and banks faced significant declines. Wall Street is now speculating on Federal Reserve interest rate cuts amid economic concerns.

Market volatility surged on Thursday as U.S. stock index futures plunged in response to President Donald Trump's sweeping trade tariffs on major global allies, raising fears of an impending trade war. The heightened tensions have cast a shadow over global economic stability, sending stocks into a downward spiral.

At the heart of the market unrest, the S&P 500 futures fell by 3.26%, while Dow and Nasdaq futures also saw significant declines as tech giants like Apple and Microsoft bore the brunt of the tariff shock. Apple's shares, in particular, sank dramatically due to high tariffs impacting its manufacturing base in China.

Adding to the anxiety, the U.S. small-cap Russell 2000 index dropped 4.5%, with major retailers and banks feeling the heat. Wall Street's fear gauge, the CBOE Volatility index, hit a three-week high. Investors are now attentively monitoring upcoming U.S. job reports and Fed decisions for further economic insights.

(With inputs from agencies.)