U.S. Stock Futures Point to Another Volatile Week
NEW YORK — U.S. stock futures tumbled Sunday evening, signaling continued market volatility following last week’s steep losses tied to newly implemented tariff policies. Dow futures dropped 979 points (2.5%), while S&P 500 futures declined 2.9% and Nasdaq-100 futures fell 3.9%, as investor concerns persisted heading into Monday’s session.
These declines followed a historic two-day market downturn last week, where major indexes posted some of their sharpest losses in years.
Recap of Last Week’s Sell-Off
The end of last week saw significant declines:
- The Dow Jones Industrial Average experienced back-to-back drops of over 1,500 points, including a 2,231-point loss on Friday.
- The S&P 500 fell 6% on Friday alone, bringing its two-day loss to 10%, and placing it 17% below its February peak.
- The Nasdaq Composite officially entered a bear market, down 22% from its record high.
Tariff Tensions Fuel Market Uncertainty
Investors were hoping for signs of diplomatic progress over the weekend, but no delay or rollback of the tariffs was announced. Instead, administration officials confirmed that the new rates, including a 10% tariff that took effect Saturday, would remain in place.
Statements from U.S. officials included:
- President Trump acknowledged the market decline but stated tariffs were necessary to address the trade deficit with China.
- Commerce Secretary Howard Lutnick confirmed that no delays to the tariffs were being considered.
- Treasury Secretary Scott Bessent said over 50 countries had opened talks, but emphasized that resolving trade issues would take time.
China’s decision on Friday to impose a 34% tariff on all U.S. imports triggered renewed concern over escalating trade conflicts.
Market Reactions and Global Impact
Concerns spread that further volatility could force institutional investors to liquidate holdings to meet margin requirements. The CBOE Volatility Index (VIX), often called Wall Street’s fear gauge, closed at 45, a level typically associated with bear markets.
Bitcoin, which had previously held steady, fell below $80,000 Sunday night amid broader risk-off sentiment.
Global markets also reacted negatively:
- Japan’s Nikkei 225 plunged 8% at Monday’s open.
Other regions, including Canada and the European Union, were reportedly considering retaliatory tariffs. Vietnam was the only nation publicly offering tariff reductions in response to U.S. policies.
