All three major indexes are plummeting ahead of the open
Stock futures are plunging ahead of the open, after President Donald Trump's "Liberation Day" tariff announcement sparked renewed fears of a global trade war. The White House unveiled a baseline 10% tariff on all countries, effective Saturday, April 5, with more reciprocal tariffs on April 9. This will bring the overall tariff rate for China to 54%, excluding the potential levy due to Venezuelan oil.
In response, Dow Jones Industrial Average (DJI) futures are down more than 1,200 points, while futures tied to the Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) are both plummeting as well, with the latter on track to reenter correction territory during regular hours.
Continue reading for more on today's market, including:
- Boeing is making "sweeping changes" after several missteps, but the stock is entering a historically weak month.
- Why Citigroup upgraded Charles Schwab stock.
- Plus, 2 retailers deeply impacted by tariffs; and Ford offers heavy discounts.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 1.1 million call contracts and 658,553 put contracts exchanged on Wednesday. The single-session equity put/call ratio rose to 0.59, while the 21-day moving average stayed at 0.60.
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Athletic retailer Nike Inc (NYSE:NKE) is down 12.7% before the bell following tariff updates, as the company does a great deal of business in China and Vietnam. Should these losses hold, NKE will significantly expand its 14.2% year-to-date deficit.
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Lululemon Athletica Inc (NASDAQ:LULU) is in the same boat as it sources a large portion of its productions from Vietnam. LULU is down 15.1% premarket, looking to add to its 26.1% deficit in 2025.
- Shares of Ford Motor Co (NYSE:F) are down 2.3% in electronic trading, after it launched its new ad campaign called "From America for America." The automaker will offer employee discounts to all customers as tariffs get underway. Since the start of the year, the equity is up 4.2%.
- Inflation data and big bank earnings next week.
Global Markets Respond
Markets in Asia suffered losses across the board today, as the continent prepares for the long-term economic impact Trump’s tariffs will have. Chinese exports are expected to take off 2%-2.5% of the country’s gross domestic product (GDP) growth, while the 25% levy on auto exports to the U.S. also weighs. In Japan, bond yields tumbled, the 20-year hitting a roughly one-month low mid-session. For the day, Japan’s Nikkei fell 2.8%, Hong Kong’s Hang Seng dropped 1.5%, China’s Shanghai Composite shed 0.2%, and South Korea’s Kospi pulled back 0.8%.
Sentiment is even worse in Europe, with all major indexes sporting steep deficits at last glance. Bank, tech, and utility stocks are taking the biggest hits, though European Commission President Ursula von der Leyen said the region is preparing a response to U.S. tariffs. At midday, London’s FTSE 100 is off 1.5%, France’s CAC 40 is down 2.7%, and Germany’s DAX has shed 2.3%.