Global Stock Markets Plunge Ahead of Monday Trading as Tariff Fears Escalate

Hadisur Rahman, Jadetimes Staff

H. Rahman is a Jadetimes news reporter covering Business

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Image Source: Michael M. Santiago/Getty Images

Global stock markets are reeling ahead of Monday’s opening bell in New York, continuing a dramatic selloff sparked by escalating tariff tensions between the U.S. and its trading partners.

Dow Jones Industrial Average futures tumbled by approximately 1,300 points, or 3.5%, while S&P 500 futures slid 3.9%, and Nasdaq 100 futures plummeted 4.8%. The sharp declines signal another tumultuous day for investors, following two days of steep losses that erased $6 trillion in stock market value.

The pressure originated from President Donald Trump’s announcement of reciprocal tariffs aimed at reducing trade deficits with China, the European Union, and other countries. When asked Sunday night if the tariffs were intended to damage markets, Trump replied, “That’s not true but I do want to solve the deficit we have.” He added that he had been in talks with European and Asian leaders over the weekend, noting, “They’re dying to make a deal.”

Markets across Asia followed suit, with Japan’s Nikkei 225 down 6% and the Topix index plunging 6.7%. China’s Shanghai Composite lost 4%, while Hong Kong’s Hang Seng Index crashed 8.6%.

The turmoil marks an extension of last week’s massive losses. The Dow Jones fell 3,269 points, or 7.9%, to close at 38,315. The S&P 500 dropped 9.1% to 5,074, and the Nasdaq Composite plunged 10% to 15,588, officially entering bear market territory after falling more than 20% from its December peak.

China’s response to the U.S. tariffs included retaliatory duties of 34%, which further rattled investor confidence. The S&P 500 experienced its largest one-day drop since 2020, and the Cboe Volatility Index soared to 41, signaling heightened market fear.

If the S&P 500 closes below 4,915.32 on Monday, it will officially join the Nasdaq in bear market territory, deepening concerns of a prolonged economic downturn.

Looking ahead, investors will monitor key economic indicators, including the March Consumer Price Index (CPI) on Thursday, followed by the Producer Price Index (PPI) on Friday. The University of Michigan’s preliminary consumer sentiment survey for April is also due Friday.

Federal Reserve Governor Adriana Kugler is scheduled to speak on inflation dynamics and the Phillips curve at Harvard University on Monday, an address likely to be closely watched by market participants.