Stock Futures Decline After Tariff Announcement Triggers Market’s Largest Losses Since 2020

Futures tied to the Dow Jones Industrial Average fell on Friday morning after President Donald Trump’s tariff announcement triggered the most significant market downturn in five years.

Dow futures lost 128 points, or 0.31%, following a dramatic drop of over 1,600 points for the index the previous day. Futures for the S&P 500 and Nasdaq 100 also saw declines of 0.29% and 0.28%, respectively.

Thursday’s market performance marked the worst day since 2020 for all three major indices. The Dow and S&P 500 each lost approximately 4%, while the technology-heavy Nasdaq Composite plummeted nearly 6%. The S&P 500 entered a correction, dropping more than 10% from its February peak. The Russell 2000, which tracks small-cap stocks, saw a 6% decline, marking the first widely followed index to enter a bear market with a drop of at least 20% from its recent high.

The sell-off particularly impacted megacap technology stocks, with the “Magnificent Seven” index, which includes major tech players, tumbling more than 6%. These stocks, which had fueled market growth in 2023 and 2024, collectively lost over $1 trillion in market value.

This sharp downturn follows Trump’s announcement on Wednesday of a 10% baseline tariff on all imported goods, effective April 5, with higher rates imposed on certain nations. The tariff plan has led to significant concerns among investors, who are reducing their exposure to riskier assets. Trump has suggested that he is open to trade negotiations with other countries, a shift from earlier statements that indicated a more hardline stance.

The global impact of the tariffs has been profound, with European and Asian markets also experiencing declines. The Stoxx 600 index in Europe fell by 1.67%, while major indices in the UK, Germany, and France were down by more than 1%. China’s response to the tariffs, which includes a retaliatory 34% tariff on all U.S. goods starting April 10, added further pressure to global markets.

In the US, investors are closely watching the March jobs report, due later on Friday, which is expected to show a rise of 140,000 jobs and a stable unemployment rate of 4.1%. Despite the market turmoil, some sectors, such as consumer staples and utilities, have performed well, with companies like Dollar General and Lamb Weston seeing gains amid the broader sell-off.

The Guardian, CNBC, and BBC contributed to this report.