US Stock Market On Track To Fall For Second Day In A Row — Here's Why

synopsis

The U.S. stock market appeared set to extend losses Friday, as futures pointed lower following Thursday’s $2.5 trillion selloff – the steepest one-day decline since 2020. 

Markets are under renewed pressure from a broadening trade conflict sparked by President Donald Trump’s sweeping tariff hike earlier this week.

The Dow Jones Industrial Average tumbled nearly 1,700 points Thursday, while the S&P 500 (SPY) fell 3.6% and the Nasdaq Composite plunged close to 6%, led by losses in large-cap tech stocks.

Apple (AAPL), Amazon (AMZN), and Meta Platforms (META) led the ‘Magnificent 7’ decline. Apple’s stock was down 9.3% on Thursday, while Amazon and Meta Platforms stocks dipped by 9%. 

Selling resumed in pre-market trade on Friday after China announced new tariffs of 34% on all U.S. imports, effective April 10. The move mirrors the rate imposed by the U.S. on Chinese goods and signals an escalating standoff between major global trading partners.

Dow Jones Industrial Average futures pulled back around 2.5%, or over 1,000 points. S&P 500 futures also sank about 2.4%, while contracts on the tech-heavy Nasdaq 100 dropped 2.6%.

“The rollout is going very well,” Trump told reporters aboard Air Force One on Thursday, brushing off market volatility. 

He added he’s open to “phenomenal” offers from trading partners to lower tariffs but reiterated his position that retaliatory action was necessary.

“For nations that treat us badly, we will calculate the combined rate of all their tariffs, non-monetary barriers and other forms of cheating,” he said.

Canadian Prime Minister Mark Carney also said Ottawa will apply a 25% tariff on U.S.-made vehicles that fail to meet USMCA requirements in response to Trump’s tariffs, adding to tensions across North America.

Analysts believe that the tariffs could trigger a global recession. 

JPMorgan economist Nora Szentivanyi warned that Trump's “remarkably large and broad-based hike” in tariffs poses a serious macroeconomic shock. 

“If fully implemented, these policies would likely push both the U.S. and global economy into recession this year,” she said in a note to clients, as per TheFly.

Friday’s jobs report showed the U.S. added 228,000 jobs in March, beating expectations, but the unemployment rate ticked up to 4.2%.

The U.S. jobs report on Friday showed 228,000 new jobs added in March, above consensus estimates, though the unemployment rate ticked up to 4.2%.

Attention now turns to Federal Reserve Chair Jerome Powell, who is expected to speak Friday morning. 

“The increased risks to both inflation and employment put the Fed in an even greater bind going forward,” Evercore ISI said in a note Thursday cited by TheFly.

Traders are increasingly betting on multiple rate cuts this year, with four now priced in, according to CME FedWatch data, as the Fed faces mounting pressure to respond.

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