Stock Market Crash: Panic in US stock market- Dow Jones Futures fell by 1000 points, but why

The US stock market witnessed a huge decline after US President Donald Trump announced a major reciprocal tariff on Wednesday. Trump has announced a baseline import duty starting at 10% and tax at much higher rates, which has further intensified the fear of a global trade war.

What happened in the stock markets?  Dow Jones Futures fell 1000 points i.e. 3%. S&P 500 Futures fell by 3.5%. Nasdaq-100 Futures plunged by -4%.

Which companies were hit the most-  Shares of Nike and Apple fell by 7%. Import-dependent companies like Five Below (-14%), Dollar Tree (-11%), and Gap (-8.5%) were badly hit. Tech stocks like Nvidia (-5%) and Tesla (-7%) also fell. What are market experts saying? Art Hogan (Chief Strategist, B. Riley Wealth Management) has said that this is one of the most confusing policy announcements ever. It will prove to be much more complex and expensive than what the market had priced before. Larry Tentarelli (Blue Chip Trend Report):- If there was only a 10% tariff, the market would have been up. But the announcement of high rates increased the fear further.  3 major reasons for concern:- The effective tariff on China has now reached 54%, which includes the 20% tax already imposed. Fears of recession are increasing as the impact on trade may slow down the economy. Inflation and import prices will increase. American companies will have to import goods at higher prices. This move, taken under Trump's "Make America Wealthy Again" policy, has shaken the global trade and investment environment. The future course will now depend on how other countries respond—whether they also impose reciprocal tariffs, or come to the negotiating table.

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