Market Jitters: Tariffs Trigger Financial Shockwaves

U.S. futures plummeted amidst fears of a trade war after President Trump's tariffs on key trade partners. Major tech stocks led the decline as investors braced for economic downturn risks. The tariffs disrupt global trade and hint at an economic strategy shift, affecting markets and economic forecasts.

Financial markets were rattled on Thursday as U.S. futures tied to the Nasdaq dropped by 4%, driven by President Donald Trump's extensive tariffs on significant trade partners. This move has sparked fears of an outright trade war, heightening the risk of pushing the global economy into a recession.

Tech giants Apple, Microsoft, and Nvidia experienced severe losses, with Apple's premarket shares tumbling 7.6% due to a 54% tariff load on Chinese imports, which impacts its manufacturing base. Correspondingly, Microsoft's share price decreased by 2.7%, and Nvidia saw a 6% fall.

The S&P 500 and tech-heavy Nasdaq saw significant declines from previous highs, highlighting market correction as traders anticipate Federal Reserve interest rate cuts in response to potential economic damage. Economic indicators such as payrolls data and Fed Chair's statements are now scrutinized for insights into economic health and future monetary policy adjustments.

(With inputs from agencies.)