Wall Street tumbles amid fears of Trump's new tariffs
- Wall Street and European stock markets faced significant declines due to impending tariff announcements.
- Anxiety surrounding inflation and economic slowdown contributed to a historic drop in consumer confidence.
- Investors are fleeing equities for safer assets amid growing concerns regarding the trade war.
On March 30, 2025, significant market unrest was observed in the U.S. as stocks experienced a notable downturn in response to President Donald Trump’s impending announcement regarding new tariffs, termed 'Liberation Day' set for April 2. Investors expressed increased anxiety about the possible implications of additional tariffs on consumer prices and the broader economy, as the country grapples with a mix of high inflation and slowing economic growth. Consumer confidence dipped to a 12-year low, with more Americans voicing concerns over the effects of tariffs on their finances. This climate led to a bleed of over 5% in the S&P 500 index for the quarter, representing the worst performance in nearly three years, while the tech-heavy Nasdaq composite fell by 2.5%. In addition to the concerns about tariffs, individual company stocks faced specific pressures. Tesla saw a significant drop of 5.6% in stock value, following a broader trend of losses amounting to 42% since Trump took office, particularly amidst public critiques of CEO Elon Musk’s political actions and spending cuts. Other tech stocks also felt the effects, with Apple shares declining less than 1%, partly due to regulatory fines in France affecting its business practices. European markets mirrored this unease, with London’s FTSE 100 dropping by over 100 points, amidst fears of the trade war escalating rapidly. Major European indexes such as Germany’s Dax and France’s Cac 40 also recorded notable losses, as investors found themselves grappling with a pervasive sense of uncertainty brought about by the impending tariff decisions announced by Trump. Kathleen Brooks from XTB explained that there seems to be a sense of capitulation in the markets as they react to tariff-related anxieties. In the wake of these developments, commentators noted that there was nowhere for investors to find safety amidst the widespread panic, leading to outflows from equities into traditionally safe assets like gold. On the trading front, several companies reported significant stock price swings, JetBlue acquired Mr. Cooper in a deal which caused fluctuating shares in both companies, highlighting the interconnected nature of financial markets amid looming economic challenges. As the situation unfolds leading up to the ‘Liberation Day,’ market observers are keenly watching how these factors play out in the coming weeks.