- Dow futures drop over 1,000 points; Nasdaq futures down 4.4% amid trade war fears
- S&P 500 and Nasdaq near or in bear market territory after historic selloff
- Trump’s tariff escalation sparks global retaliation from China and EU
- JPMorgan now forecasts a US recession in 2025 as economic outlook darkens
April 8, 2025 – Wall Street is bracing for another volatile session as US stock futures plunged Sunday evening, extending last week’s historic losses triggered by President Donald Trump’s sweeping global tariff plans.
Futures on the S&P 500 (ES=F) sank over 3.5%, while the tech-heavy Nasdaq (NQ=F) tumbled 4.4%. The Dow Jones Industrial Average futures (YM=F) fell 3%, or more than 1,000 points, setting the stage for a rough open on Monday.
The losses follow a brutal week that saw more than $5 trillion in market value wiped out, marking Wall Street’s worst performance since the onset of the COVID-19 pandemic. On Friday, the Nasdaq Composite officially entered a bear market, falling more than 20% from recent highs, while the S&P 500 is rapidly approaching that threshold. The Dow Jones is already in correction territory.
Oil markets mirrored the equity collapse, with Brent and WTI crude prices dropping more than 3%, pulling WTI below $60 for the first time since 2021, amid concerns of slowing global growth and weakening demand.
President Trump’s 10% blanket tariffs on US trading partners took effect over the weekend, with additional targeted tariffs set to hit by midweek. China has already announced 34% retaliatory tariffs, and European leaders are preparing countermeasures.
Despite the market turmoil, Trump and senior administration officials defended the strategy, insisting the tariffs are necessary to correct long-standing trade imbalances. Treasury Secretary Scott Bessent rejected recession fears, while Commerce Secretary Howard Lutnick said the new tariff regime would stay in place for “days and weeks.”
However, JPMorgan became the first major US bank to forecast a recession in 2025, citing rising global uncertainty and collapsing investor confidence. Their revised outlook follows an abrupt reassessment of what had previously been a stable growth trajectory for the US economy.
President Trump, speaking aboard Air Force One, acknowledged market pain, saying that sometimes “you have to take medicine to fix something,” but insisted the country is “much stronger” now and can withstand short-term shocks.
With bearish momentum building, analysts warn that further selloffs could be likely unless there is a rapid de-escalation in trade tensions. Global investors are watching closely as the week unfolds, particularly any signs of concessions or backchannel diplomacy between Washington and Beijing.
With bearish momentum building, analysts warn that further selloffs could be likely unless there is a rapid de-escalation in trade tensions. Global investors are watching closely as the week unfolds, particularly any signs of concessions or backchannel diplomacy between Washington and Beijing.
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