U.S. stock futures fell on Monday as traders looked ahead to “Liberation Day” for clarity on President Donald Trump’s tariff plans. Dow futures dropped 238 points, or 0.6%, while S&P 500 and Nasdaq futures dipped 0.9% and 1.2%, respectively. A new series of tariffs, set to be enacted by the Trump administration, will take effect on Wednesday, a day Trump has termed “Liberation Day.” These include a significant levy on “all cars that are not made in the United States.” The president is also expected to announce his plan for reciprocal tariffs.
US stocks tumble as deepening consumer gloom raises stagflation fears https://t.co/VVQUs9BYIZ via @ft
— Oliver Stuenkel 🇧🇷 (@OliverStuenkel) March 28, 2025
Uncertainty about the tariffs has weighed on equities, pushing stocks lower on Friday and ending the last full trading week of March on a sour note. Trump’s lack of assurances over the weekend further exacerbated concerns. Reportedly, the president has been urging his advisors to adopt a more aggressive stance on tariffs.
Auto stocks were notably lower in premarket trading on Monday. Shares of Ford Motor and General Motors dropped around 1%, while Stellantis shed nearly 3%.
Hardworking Americans have invested in their retirement plans their entire lives—we trust them to support us in our old age.
President Trump's policies are taking our retirement away.https://t.co/3J45CAhgIw— Joe Morelle (@RepJoeMorelle) March 28, 2025
The tariffs are not limited to a select group of countries with trade imbalances with the U.S. but will target all foreign automakers.
“Tariff risk has been well telegraphed and is largely priced into certain corners of the market.
Stocks To Watch | 📊Ready, set, trade! Keep an eye on these stocks as they set the market abuzz #StockMarket pic.twitter.com/lBR2wNGGz2
— ET NOW (@ETNOWlive) March 31, 2025
However, no one wins from a trade war, and clouds are gathering over the global growth outlook,” noted Barclays equity strategist Emmanuel Cau in a Friday note. He added that negotiations would likely start after April 2, leading to an extended period of uncertainty about the tariffs’ final scope, level, and timing.
Monday marks the final day of what has been a tumultuous month and quarter for Wall Street.
#NewsFatafat | Deep gashes on the Wall Street with all three benchmark indices closing in the red. Hotter-than-expected inflation data and uncertainty over upcoming tariffs send markets in downward spiral#Nasdaq #WallStreet pic.twitter.com/KcZHv6iHkY
— ET NOW (@ETNOWlive) March 29, 2025
U.S. tariffs impact global markets
The S&P 500 dipped into correction territory in March after hitting a record high in February.
The index is down 9.2% from its all-time high as of Friday’s close and has slipped more than 6% for the month, on pace for its biggest one-month slide since September 2022. The Nasdaq has lost 8% in March, while the Dow has fallen 5.2%. For the quarter, the S&P 500 is down 5.1%, ending a five-quarter winning streak.
The Nasdaq has lost 10.3%, its worst quarterly pullback since a 22.4% plunge in Q2 2022. The Dow shed 2.3% in the first quarter of 2025. Investors are also anticipating a heavy slate of economic data this week, most notably the March jobs report, which will be released at 8:30 a.m. ET on Friday, April 4.
Asia-Pacific markets tumbled Monday ahead of the anticipated tariffs. Japan’s Nikkei 225 entered correction territory, closing down 4% to end the day at 35,617.56, losing nearly 12% from its December high. The broader Topix index lost 3.57% to 2,658.73.
In South Korea, the index dropped 3% to 2,481.12, while the small-cap Kosdaq declined 3.01% to 672.85. Australia’s benchmark ended the day 1.74% lower at 7,843.30, ahead of the Reserve Bank of Australia’s policy meeting on Tuesday, where the central bank is widely expected to maintain interest rates at 4.1%. China’s indexes also faced downward pressure, with losses of 0.71% on mainland and 1.02% in Hong Kong.
Indian markets were closed for a public holiday.
