US futures drop sharply due to concerns over fallout from tariffs, sparking fears reminiscent of the Great Depression; also impacting cryptocurrency like Bitcoin and Ethereum
Stock markets worldwide are in turmoil as recent tariffs imposed by the Trump administration have sparked fears of a potential economic downturn akin to the Great Depression. The US stock market has been hit hard, with the Dow plunging over 2,200 points amidst the selloff in tech giants like Apple, Tesla, and Nvidia. Investor sentiment has taken a hit, with many expressing extreme fear as the fear index remains high.
Japan’s Nikkei futures were halted, and the Hang Seng index suffered an 8.8% crash, signaling a global market rout fueled by the shock of new tariffs. Analysts are pointing to Trump’s stubborn imposition of tariffs as a key driver of this market turbulence.
In the crypto world, Bitcoin, Ethereum, XRP, and Dogecoin have collectively wiped out $1.42 billion in liquidations, plummeting by up to 16%. Analysts are predicting a potential test of $70,000 for Bitcoin amidst fears of a “Black Monday” panic. Fartcoin, on the other hand, has returned over 8% in a week marked by drops in Dogecoin and Ethereum.
President Trump’s tariffs have caused ripple effects across various sectors. In US politics, critics warn that American families could end up paying $3,800 more per year due to tariffs, despite Trump claiming they bring billions into the US. Singapore’s PM also expressed concerns about the implications of the tariffs, warning of trouble for all nations.
In the realm of the US economy, the likelihood of a recession in 2025 has soared, with odds above 60% on the crypto-based Polymarket. Various financial experts have cautioned against the tariffs’ impact on US growth and inflation, urging for a swift resolution. The apparel industry faces potential price shocks, and the lack of a “Trump Put” could drive the market lower quickly.
Globally, markets have seen their worst drop since 1997, with crude oil prices tumbling amidst the tariff turmoil. Tech giants like Apple, Facebook, and Google have become bargaining chips in the US trade war, threatening retaliation from the EU. Semiconductor stocks face near-term risks under Trump’s tariff policies, despite previously investing billions in the US.
The energy sector is also feeling the heat as Shell lowers its Q1 production outlook, signaling potential write-offs in the near future. Amidst this economic uncertainty, investors and analysts are closely watching the developments to assess the long-term impact of these tariffs on various industries and the global economy as a whole.
