- Stock futures dropped sharply on Thursday, with Dow futures falling 641 points (1.57%) to 40,195.00, S&P 500 futures declining 85.75 points (1.56%) to 5,405.25, and Nasdaq-100 futures losing 474.75 points (2.46%) to 18,814.00, led by Apple and Tesla’s premarket declines of over 3.84% and 3.49%. Nvidia is also in the red with a 3.63% slide.
- The downturn followed a historic Wall Street rally sparked by Trump’s 90-day tariff reduction to 10% for most countries, exempting Canada and Mexico, which drove the S&P 500 up more than 9%, the Dow to its best day since March 2020, and the Nasdaq to its second-best day ever with 30 billion shares traded.
- The European Union mirrored Trump’s move with a 90-day tariff pause on U.S. goods, but Thursday’s futures retreat, including a 641-point Dow drop and a 474.75-point Nasdaq slide, suggests investor caution after the prior day’s record-setting gains.
Stock futures took a sharp downturn on Thursday, with Dow Jones Industrial Average futures shedding 641 points, or 1.57%, to 40,195.00, while S&P 500 futures dropped 85.75 points, or 1.56%, to 5,405.25, and Nasdaq-100 futures declined 474.75 points, or 2.46%, to 18,814.00. This retreat followed an extraordinary rally on Wall Street, triggered by President Donald Trump’s decision to ease his “reciprocal” tariffs, reducing rates to 10% for most countries for a 90-day period, sparing Canada and Mexico from an additional 10% duty. The announcement not only fueled a historic surge but also prompted the European Union to reciprocate with a 90-day pause on tariffs targeting U.S. goods, setting the stage for a potential de-escalation in global trade tensions.
The preceding day’s market euphoria saw the S&P 500 (^GSPC) leap more than 9%, marking its third-largest single-day gain since World War II, while the Dow Jones Industrial Average (^DJI) notched its most significant percentage increase since March 2020, and the Nasdaq Composite (^IXIC) recorded its second-best day ever, surpassed only by a January 2001 performance. Trading volume reached an unprecedented 30 billion shares-per CNBC, the highest in 18 years, reflecting the frenetic pace of investor activity as markets digested Trump’s tariff reprieve. However, the premarket declines on Thursday underscored a swift shift in sentiment, with tech giants Apple (AAPL), Nvidia (NVDA), and Tesla (TSLA) leading the pullback, dropping more than 3.84%, 3.63%, and 3.49% respectively, signaling potential profit-taking or heightened uncertainty after the prior day’s gains.
Trump’s tariff adjustment, announced on Wednesday, injected a jolt of optimism into equities, as investors anticipated that a temporary rollback could pave the way for broader trade negotiations, particularly with exemptions for Canada and Mexico softening the blow to North American supply chains. The S&P 500’s massive 9% climb highlighted the market’s sensitivity to trade policy shifts, while the Nasdaq’s record-setting day underscored the tech sector’s pivotal role in driving gains, only to see Apple and Tesla reverse course in premarket trading. The Dow’s robust advance, its strongest in over five years, reflected broad-based enthusiasm, yet the futures’ subsequent 641-point drop suggested that investors were quick to reassess positions amid lingering questions about the tariff pause’s long-term implications.
This volatility comes against a backdrop of global economic interdependence, where the EU’s swift tariff suspension on U.S. goods mirrors Trump’s 90-day window, hinting at a coordinated effort to stabilize trade relations. The record 30 billion shares traded on Wednesday illustrate the intensity of market participation, dwarfing typical volumes and amplifying the rally’s significance. Yet, the sharp declines in futures, particularly the Nasdaq-100’s 475-point slide, indicate that the initial exuberance may be giving way to caution, with Apple, Nvidia, and Tesla’s premarket losses serving as bellwethers for a tech-heavy index that had just posted its second-best day in history. As markets navigate this abrupt pivot, the interplay between Trump’s policy shift and global responses continues to shape a dynamic and unpredictable landscape.
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