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Takeaways from the Key Takeaways
- Global stocks have fallen sharply Thursday after President Donald Trump announced sweeping tariffs against U.S. trading partner countries. The tariffs were more severe than expected by investors and fueled fears of a trade war.
- Dow Jones Industrial Average futures have dropped more than 1,000 pts. Investors are looking to haven trades, such as Treasurys. The 10-year yield is now at 4.05%.
- The Stoxx Europe 600 index is down 1.7%, while Japan's Nikkei and Hong Kong's Hang Seng closed down 2.8% and 1.5%, respectively.
Global stocks are slumping Thursday after President Donald Trump imposed sweeping reciprocal tariffs on U.S. trading partners that were worse that investors expected and raised fears of a growing trade war.
U.S. stock futures are dropping, with Dow Jones Industrial Average futures tumbling more than 1,000 points. Investors are seeking haven trades such as Treasurys, with the 10-year yield falling to 4.05%. The Stoxx Europe 600 index closed down 1.7%. Japan’s Nikkei, and Hong Kong’s Hang Seng, closed down 2.8% each.
Magnificent Seven shares also fell in premarket trade, led down by a 7% fall for Apple (AAPL), Citi estimates more than 90 percent of its products are produced in China which has 54% cumulative tariffs on imports. Shares of the rest—Microsoft (MSFT), Nvidia (NVDA), Alphabet (GOOGL), Amazon (AMZN), Meta (META), and Tesla (TSLA)—all fell at least 2%.
Daniel Morris, BNP Paribas Asset Management’s Chief Market Strategist, wrote in a Thursday note that “the tariff announcement was worse than many investors expected.” The key question is whether there are any room for negotiation in the reciprocal tariffs.
