US stock futures saw a drop on Tuesday, marking a rough start to the second quarter of 2025, amid growing uncertainty about President Donald Trump’s forthcoming tariff policies.
Futures tied to the Dow Jones Industrial Average slipped by 232 points, or 0.5%, while both S&P 500 and Nasdaq-100 futures also saw declines of 0.4%.
The downturn comes as the market anticipates clarity on the White House’s upcoming tariff announcement. The administration is expected to unveil reciprocal tariffs, which could impact goods from a wide range of countries. This uncertainty has caused volatility in the markets, as investors were hoping for a more measured approach to the implementation of tariffs.
The Washington Post reported on Tuesday that the Trump administration is considering imposing tariffs as high as 20% on most US imports, citing sources familiar with the matter. However, no official decision has been made yet. This potential tariff hike has contributed to the decline in stock futures, fueling concerns about the economic implications of a broader trade war.
This week also marks the beginning of the second quarter, following a turbulent first quarter in the stock market. For the first three months of the year, the S&P 500 dropped 4.6%, the Nasdaq Composite saw a 10% decline, and the Dow Jones Industrial Average fell by 1.3%. These losses marked the worst quarterly performance for the major indexes since 2022.
Barclays assistant vice president Anshul Gupta noted in a report that while there is room for a potential market rebound if the tariffs are less severe than expected, the risk remains tilted to the downside. The uncertainty surrounding the trade policy has contributed to heightened volatility, with investors unsure of the long-term impact.
With input from CNBC, the New York Times, and Reuters.
