Suzanne McGee and Sinéad Carew here with the latest update: Sunday’s market activity wasn’t looking too promising as U.S. stock futures took a nosedive, suggesting the selloff from the previous days might still have some steam after the Trump administration’s tariff announcement sent shockwaves through the financial world.
Investors braced themselves for yet another tumultuous week, anticipating reactions from global trading partners to the unexpected severity of the tariffs. By Sunday, the U.S. S&P 500 E-minis were already down about 4%. Meanwhile, Dow E-minis slipped 3.8%, and Nasdaq 100 E-minis were not far behind, dipping 4.6%.
The aftermath of Trump’s mid-week announcement saw the S&P 500 shedding 10.5%, with a staggering $5 trillion in market value wiped out—a jolt not seen since March 2020. The sharp declines on Thursday and Friday dragged the S&P 500 down over 17% from its peak on February 19, inching dangerously close to a bear market, commonly recognized by a 20% drop.
Mark Malek, chief investment officer at Siebert Financial, didn’t sugarcoat the situation, declaring the bull market “dead” before futures began trading. While there might be some recovery in the coming days, Malek believes these gains won’t have much staying power.
It’s no help that the tariffs were announced just as first-quarter earnings reports began trickling in, adding a layer of uncertainty to the financial forecast, Malek pointed out.
President Trump’s economic team took to the airwaves Sunday morning, attempting to spin the tariffs as a strategic move. Treasury Secretary Scott Bessent, appearing on NBC’s “Meet the Press,” expressed confidence that a recession wasn’t on the horizon.
Despite the doom and gloom, some traders are holding out hope for a brief market rebound. Steve Sosnick, chief investment strategist at Interactive Brokers, foresees at least one positive trading day this week, though he cautions against getting too optimistic.
Alex Morris from F/m Investments shared similar sentiments, suggesting that while we may see a mix of red and green on trading screens this week, a sustained recovery could be weeks away. By then, he speculates, the market may finally stabilize.
Reported by Suzanne McGee with additional insights from Sinéad Carew, and editing by Megan Davies and Leslie Adler.
