Market Mayhem: U.S. Stocks Plunge Amid Tariff Tensions

U.S. stock index futures fell sharply as the S&P 500 neared a bear market due to concerns over President Trump's tariff plans. Government bonds saw increased demand, while market volatility heightened fears of a recession. Notable declines were observed across major indices and stocks, including Apple and Amazon.

In a turbulent session for U.S. markets, stock index futures took another hit on Monday, with the S&P 500 on the brink of confirming a bear market. The financial upheaval comes as investors seek refuge in government bonds amidst growing unease over President Donald Trump's sweeping tariff proposals.

U.S. Treasury yields on the 10-year note have dropped to 3.954%, reflecting investor expectations of a potential fifth interest-rate cut from the Federal Reserve this year. S&P 500 futures have tumbled over 20% from their peak, signaling bear market territory if this trend lingers. The Dow also dropped significantly as trade tensions flare.

President Trump's recent announcement on hefty tariffs has sparked retaliation from China, raising fears of a trade war-induced economic slowdown. Key indices plunged in response, with major stocks like Apple and Nvidia witnessing notable declines. The market's volatility index soared, pointing to heightened uncertainty among investors.

(With inputs from agencies.)