Synopsis:Markets rattle as Trump hikes global tariffs to 15% via Trade Act after Supreme Court blocks prior plan. Dow futures drop 0.5%, Bitcoin slips below $65K, oil falls 1.2%.
Wall Street braces for turbulence after the president’s latest trade move shakes investor confidence. U.S. markets kicked off the week on shaky ground. President Donald Trump announced a sharp increase in global tariffs. Investors are now wondering what comes next.
Futures Take a Hit Monday Morning
The sell-off started fast. Dow Jones futures dropped 301 points, or 0.6%, at the open. S&P 500 futures slid 0.73%, while Nasdaq 100 futures fell 0.9%. The drop came after Trump announced he would raise global tariffs from 10% to 15%. He made the announcement on Saturday through a Truth Social post. The new rate took effect immediately, he said.
Source: x.com/POTUS
“I will be raising the 10% Worldwide Tariff to the fully allowed, and legally tested, 15% level,” Trump wrote. He also warned that more tariffs would follow in the coming months. Investors did not take the news well. Markets had just started to settle after a bumpy Friday session.
Oil and Crypto Also Feel the Pressure
It wasn’t just stocks. Oil prices fell sharply alongside equity futures. Brent crude dropped 1.2% to $70.93 per barrel. U.S. crude fell to $65.65 per barrel, also down 1.2%.
Bitcoin tumbled as well. The cryptocurrency fell 5% at one point, briefly dipping below $65,000. It later recovered slightly to $65,720. Still, Bitcoin remained down 2.5% amid the sell-off. Therefore, the pain spread across nearly every major asset class. Traders moved away from riskier investments as uncertainty grew.
Supreme Court Ruling Sparked Hope Then More Chaos
Friday brought a brief moment of relief. The Supreme Court struck down a large portion of Trump’s “reciprocal” tariff plan. Stocks initially rallied on the news. The Dow Jones Industrial Average closed Friday up more than 230 points, or 0.5%. The S&P 500 gained 0.7%, and the Nasdaq Composite rose 0.9%.
Many investors hoped the ruling would ease trade tensions. Some even expected companies to receive refunds on tariffs already paid. However, that optimism faded quickly over the weekend. Then Trump raised the tariffs anyway, moving from 10% to 15%. He pointed out that the new rate is “fully allowed” and “legally tested.” That move caught many on Wall Street off guard.
“Wall Street and Main Street are going to be dealing with trade and tariffs for some time,” said Tim Holland, chief investment officer of Orion Wealth Management.
What Investors Are Watching This Week
Despite the market jitters, several key events could shift the mood. Nvidia is set to report earnings on Wednesday. The chipmaker is one of just two Magnificent Seven stocks in positive territory this year.
Investors will look closely at Nvidia’s AI strategy. Any sign of weakness could add more pressure to tech stocks already under stress. On the other hand, Trump is set to deliver his State of the Union address on Tuesday. Markets will watch for any new signals on trade policy.
On the economic front, durable goods orders and factory orders data are due Monday morning. These numbers could give clues about how businesses are responding to tariff pressure.
Iran also remains a concern. Last week urged Iran to strike a nuclear deal. He warned that “bad things” could happen if they don’t. Geopolitical tension tends to add fuel to market uncertainty.
In summary, the weeks ahead look volatile. Between new tariffs, earnings reports, and policy speeches, investors have a lot to digest. The key question is whether markets can find stable ground or whether more turbulence lies ahead.
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