According to Zhitong Finance APP, after U.S. President Trump announced that the U.S. would begin imposing a 10% tariff on its global trading partners, dozens of countries with the largest trade imbalances will face significantly increased tax rates, the U.S. stock market plummeted.As of the time of publication, S&amp;P 500 index futures and Nasdaq 100 index futures fell by 3.52% and 4.33%, respectively, with tech giants such as NVIDIA (NVDA.US), Tesla (TSLA.US), Microsoft (MSFT.US), and Apple (AAPL.US) leading the decline. The airline sector also saw a widespread drop, with Delta Air Lines (DAL.US), Southwest Airlines (LUV.US), and United Airlines (UAL.US) all experiencing declines in stock prices.On Wednesday, Trump announced that a tariff of at least 10% would be imposed on all countries exporting to the U.S. Among them, Chinese goods face a 34% tariff, EU goods a 20% tariff, and Vietnamese goods as high as 46%.Eric Beiley, Executive Managing Director of Steward Partners Wealth Management, stated, “Initially, futures rose in after-hours trading because Trump said this would be ‘reciprocal,’ but the reality is that the situation is worse, with Japan and the EU facing such high tariffs.”Before this drop, the S&amp;P 500 index had risen by 0.7% during regular trading hours, and the Nasdaq 100 index had also rebounded nearly 0.8%. However, analysts pointed out that the brief rebound before Trump's announcement was mainly due to short covering. Stocks of loss-making tech companies and heavily shorted companies saw the largest gains. The Goldman Sachs Short Interest Index (which includes companies like Roku (ROKU.US) and Peloton (PTON.US)) rose by 3.7%, outperforming the S&amp;P 500 index; another index tracking loss-making tech companies rose by 1.9%.“Traders are engaging in short covering, and market sentiment is highly tense,” noted Eric Diton, President of investment consulting firm Wealth Alliance, “but the crisis is far from over. This is just the prologue to the tariff war, not the epilogue.”<img src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250403/1743636751672636.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250403/1743636751672636.png"/>Since the peak in February, the market value of the S&amp;P 500 index has evaporated by over $4 trillion, with tariff concerns continuing to drive capital outflows. Several Wall Street trading desks, including Goldman Sachs and Bank of America, expect that the tariff measures announced on Wednesday will exacerbate the decline of U.S. stock benchmark indices.Businesses have begun to feel the impact of Trump's trade war, with the market experiencing continued turbulence in recent weeks. Charles Evans, President of the Chicago Federal Reserve, stated that the impact of one-time tariffs on prices should be temporary, but if consumers and businesses stop spending and investing as a result, the situation will become tricky.The derivatives market anticipates increased volatility in the future, at least in the short term. The CBOE Volatility Index has surpassed the 21 mark, exceeding the usual threshold of 20 that indicates heightened trader concerns. Stuart Kaiser, Head of U.S. Equity Trading Strategy at Citigroup, stated that options traders are betting on approximately 1.1% two-way volatility for the S&amp;P 500 index on Thursday<img src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250403/1743636762566107.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20250403/1743636762566107.png"/>However, not all Wall Street institutions are bearish on the market. LPL Financial Chief Equity Strategist Jeff Buchbinder believes that Wednesday's tariff statement may provide answers to several questions currently concerning investors.At present, the market's focus has shifted to the March ISM Services Activity data to be released on Thursday. The previous February data showed that the increase in costs for materials and services paid by businesses reached one of the highest levels since the beginning of 2023. Meanwhile, the ADP National Employment Report released on Wednesday indicated that hiring in the private sector is accelerating.The government non-farm payroll report to be released on Friday, as the first major data of the quarter, could have a broad impact on the bond, stock, and foreign exchange markets, as well as the Federal Reserve's next actions. Federal Reserve Chairman Jerome Powell will deliver a speech over the weekend, and the market will assess whether there are signs of weakness in the labor market

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U.S. President Trump announced a 10% tariff on global trading partners, leading to a significant drop in U.S. stock futures, with the S&P 500 and Nasdaq 100 indices falling by 3.52% and 4.33%, respectively. Tech giants such as NVIDIA, Tesla, Microsoft, and Apple led the decline, and airline stocks also fell across the board. Analysts pointed out that this drop marks the beginning of a trade war, causing market sentiment to become tense

10% "reciprocal tariffs" axe falls, US stock futures plummet across the board