U.S. futures indexes fell sharply early on Thursday, led by a deep slide in major tech stocks, while global markets also faced a major selloff after President Donald Trump’s sweeping reciprocal tariffs raised fears of a global trade war and recession.
Apple CEO Tim Cook (C) seen behind US President Donald Trump (R) and US Vice President JD Vance (L) … More after the two were sworn into office at an inauguration ceremony in the rotunda of the United States Capitol in Washington, DC.
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Key Facts
The benchmark S&P Futures were down around 3.1% to 5,534.25 points in premarket trading early on Thursday, while contracts for the Dow Jones Industrial Average was down 2.51% to 41,424 points.
The tech-heavy Nasdaq 100 index was the worst hit, falling 3.45% to 19,079.75 in the premarket, led by slumps in the share prices of major tech companies.
The shares of Apple were down more than 7.3% to $207.50 early trading on Monday.
Amazon’s stock dropped to $185.01 in the premarket, down more than 5.5% from Wednesday’s closing price.
Despite semiconductors being exempted from Trump’s reciprocal tariff measures, shares of chipmaker Nvidia fell 4.26% to $105.72 in early trading.
Shares of other tech giants like Google, Meta and Microsoft were also down, falling 2.43%, 3.5% and 2% respectively.
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How Have Foreign Markets Reacted To The Tariffs?
Foreign markets also witnessed a major selloff on Thursday, with Japan’s benchmark Nikkei 225 index ending the day down 2.77% at 34,735.93 points, while the Tokyo Stock Price Index (TOPIX) dropped nearly 3.1% to 2,568.61 points. South Korea’s benchmark KOSPI index was down 0.76% on Thursday, while Australia’s ASX 200 fell by 0.94%. Other major Asian indices like India’s Sensex, China’s Shanghai Composite Index and Hong Kong’s Hang Seng Index were down 0.45%, 0.24% and 1.52% respectively. European markets also began the day in red, as the FTSE 100 was down 1.34% in morning trading, while the pan-Europe EURO STOXX 50 fell 2.27%.
How Apple Could Be Impacted By The Tariffs?
The premarket slump in Apple’s stock comes as the company’s supply hubs appear to have taken the brunt of Trump’s reciprocal tariffs. Over the past few years, Apple has tried to diversify its supply chain and reduce dependence on China by setting up manufacturing hubs for its iPhones and other devices in Vietnam and India. On Wednesday, Trump announced levies of 34% for all imports from China—where a majority of Apple’s iPhones are assembled. This 34% is on top of the previously announced 20% tariffs—bringing the total to 54%. Imports from Vietnam will also face a steep 46% tariff rate, products made in India will face a 26% levy.
Further Reading
‘No Winner In A Trade War’: China, EU And Others React To Trump’s Reciprocal Tariffs (Forbes)
Trump Announces Reciprocal Tariff Rates—54% For China, 20% On EU (Live Updates) (Forbes)
Trump Imposes Tariffs On Uninhabited Heard And McDonald Islands—‘Remotest Places On Earth’ (Forbes)
Here’s The Full List Of Trump’s Reciprocal Tariffs Announced Wednesday (Forbes)
