Investors Abandon U.S. Stocks Amid Sharp Market Reaction to Trump’s Tariff Strategy

Global markets are in turmoil after President Donald Trump’s recent tariff announcement, triggering a sharp sell-off in U.S. stock indexes. Investors are reacting to his plans, which include a flat 10% tariff on all trading partners and reciprocal tariffs exceeding 20%. The S&P 500 ETF dropped over 2.7%, while the tech-heavy Nasdaq 100 fell more than 3.5%. Early indicators point to a potential 415-point dip for the Dow at tomorrow’s opening.

This reaction follows a challenging quarter for the indices, fueled by fears over the economic implications of Trump’s tariffs. Analyst Dan Ives from Wedbush Securities characterized the tariffs as “worse than the worst-case scenario,” prompting significant declines in major corporations integrated into global supply chains. For instance, Apple shares plummeted nearly 6%, Amazon fell by 4.3%, and Walmart dropped 7%. Nike, heavily reliant on production in Vietnam, saw a nearly 7% dip in after-hours trading.

Dollar store chains also suffered; Five Below plunged 13.5%, while Dollar Tree fell over 11%. Meanwhile, U.S. automakers are bracing for higher costs; Goldman Sachs estimates foreign-made car prices could soar by $15,000 due to the tariffs, with domestic assembly potentially facing an $8,000 increase. As stock futures are set to open at 6 p.m. ET, investors will be eager to gauge the market’s trajectory for Thursday.