Wall Street Faces Heavy Selloff as Trump’s Tariff Shock Sends Markets Reeling

US stock futures extended their decline on Friday, April 5, as investors remained on edge following President Donald Trump’s aggressive trade tariffs, which sparked a brutal selloff across Wall Street.

Thursday’s Market Meltdown: A Brutal Session for Stocks

On Thursday, April 4, US markets witnessed their worst single-day drop since 2020:

• The Dow Jones Industrial Average sank 3.98%, shedding more than 1,400 points.

• The S&P 500 plummeted 4.84%, wiping out over $1.8 trillion in market value.

• The tech-heavy Nasdaq nosedived 5.97%, leading the broader selloff.

The sharp market reaction followed Trump’s surprise announcement of a 10% baseline tariff on all imports, with even steeper duties on key trading partners such as China, Canada, and the European Union.

Tech Stocks Bear the Brunt as Selloff Intensifies

The hardest-hit stocks were tech megacaps, which have driven much of the market’s rally in recent years.

• Tesla (TSLA) dropped 5.5%, extending its recent losses amid concerns over higher material costs.

• Nvidia (NVDA) slumped 7.8%, marking one of its biggest single-day declines in months.

• Apple (AAPL) crashed 9.3%, as investors worried about supply chain disruptions.

• Meta (META) and Amazon (AMZN) both tumbled 9%, accelerating the tech rout.

The losses come as higher tariffs threaten supply chains, profit margins, and consumer demand, particularly for companies that rely heavily on overseas manufacturing.

Trump’s Mixed Signals Add to Market Uncertainty

The panic selling was initially driven by Trump’s uncompromising stance on tariffs, but later in the day, the President signaled a potential willingness to negotiate with trade partners, contradicting earlier remarks from his administration officials.

Despite this, investors remain skeptical, fearing a full-blown trade war that could derail global economic stability.

Investors Await Jobs Data for Fed Policy Cues

Beyond trade concerns, market participants are now closely watching Friday’s US monthly jobs report, which could shape the Federal Reserve’s monetary policy stance.

• If job growth remains strong, the Fed may delay rate cuts, adding to market volatility.

• Weaker employment numbers could increase the likelihood of rate cuts, which may provide some relief to investors.

Final Thoughts: Market Volatility to Persist

With US futures pointing to further declines, analysts warn that the worst may not be over for Wall Street.

Unless Trump softens his trade stance or the Fed signals supportive measures, market turbulence is expected to continue. Investors should brace for a period of heightened uncertainty, as global trade tensions remain a dominant factor shaping stock movements.

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