Markets Rattle as Trump’s Tariff Shock Hits Stocks, Crypto, and Oil

In Brief:

Nasdaq fell nearly 6%, Bitcoin dropped to $81K after radical new tariffs.

Crypto market cap slumped 8%, fear levels surged across risk assets.

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U.S. financial markets were hit with steep losses after the announcement of aggressive new tariff measures from former President Trump. The Nasdaq tumbled 5.97%—its worst single-day drop since March 2020—while the S&P 500 and Dow fell 4.84% and 3.98% respectively.

Investors reacted sharply to fears of a full-scale trade war and its potential to trigger a global economic recession. Large-cap tech stocks led the losses, with Apple plunging over 9%, and the collective market value of the “Magnificent 7” dropping by $1 trillion.

The crypto sector was not spared. Bitcoin dropped from $88,000 to near $81,000, while the overall crypto market capitalization fell nearly 8%. The Crypto Fear & Greed Index returned to “extreme fear” territory.

Commodities also suffered: oil prices saw their biggest single-day decline since July 2022, falling nearly 7%, while the dollar index dropped 1.61%, erasing gains made since the U.S. election.

Attention now turns to Powell’s upcoming speech and the March jobs report. CME FedWatch data shows that traders are pricing in the likelihood of up to four Fed rate cuts this year, up from just two a month ago.

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