US100 Tumbles in Massive Sell-off

Wall Street Rocked by “Liberation Day” Tariffs as Trade War Fears Overwhelm Markets

Global markets tumbled Thursday as the repercussions from Donald Trump’s sweeping tariff offensive spread worldwide, erasing approximately $2 trillion from the S&P 500 and triggering a flight to fixed-income havens. US equities and the dollar bore the brunt of selling amid growing concerns that the president’s trade policies will stunt American economic growth.

The sell-off was particularly severe among companies with supply chains heavily dependent on overseas manufacturing. Tech giants were hit especially hard, with Apple shares plunging nearly 9% as investors assessed the impact of the new 54% effective tariff rate on Chinese imports, where the company manufactures approximately 90% of its hardware. The Magnificent Seven stocks all declined significantly, dragging major indices lower with the S&P 500 down 4.3%, Nasdaq Composite falling 4.9%, and Dow Jones Industrial Average dropping 3.7%.

In an unusual development, the Bloomberg Dollar Spot Index dropped 2.1%, its sharpest intraday decline since the measure’s 2005 launch, while oil markets suffered with WTI crude falling over 7% to trade near $66.50 per barrel. Meanwhile, Treasury yields fell dramatically, with the benchmark 10-year yield briefly dipping below the closely-watched 4% level for the first time since October. Money markets now price in a 50% chance of four quarter-point Fed rate cuts this year.

US Yield Curve Daily Change. Source: Bloomberg L.P.

The two-step tariff approach unveiled by Trump on Wednesday imposes a baseline rate of 10% on all US trading partners but applies significantly higher duties to countries considered “bad actors” on trade. Economists warn that the tariffs—the highest effective US rate in over 100 years—will likely result in higher US prices and slower growth, with some analysts placing recession odds at 50% or higher.

“This was the worst-case scenario for tariffs and was not priced into the markets,” said Mary Ann Bartels at Sanctuary Wealth. “If these tariffs stick, the economy is going to slow down. Whether it’s a recession or not, it’s clear that the economy is headed for a slowdown in the US and around the world.”

US100 (D1 Interval)

The Nasdaq 100, represented by US100, has broken below recent lows at 19,195. Bulls need to reclaim the 78.6% Fibonacci retracement level to resume the uptrend, while bears will target November’s lows at 18,379. The RSI is approaching the 35.6 level, which previously signaled a trend change, while the MACD widens after a bearish crossover. Source: xStation 

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