Trump’s Tariffs Triggered Wall Street’s Sharp Decline

On February 3, 2025, Wall Street faced a significant downturn. This was due to US President Donald Trump’s tariffs on Canada, Mexico, and China. The S&P 500, Dow Jones, and Nasdaq futures fell by 1.3-1.8%. Investors fled to safer assets like bonds, causing Treasury yields to ease slightly, while the US dollar surged to a near two-year high.

The tariffs, including 25% duties on Canadian and Mexican imports and 10% on Chinese goods, sparked fears of a global trade war. Major tech stocks like Nvidia, Apple, and Microsoft slumped by around 2-3%. Automakers also suffered heavy losses, with General Motors plunging 6.7% and Ford dropping 4.1%.

Analysts warned that prolonged tariffs could drag down corporate earnings. S&P 500 companies might see a 2-3% decline in earnings per share (EPS). The tech sector bore the brunt of the selloff, with semiconductor stocks like Nvidia and Broadcom sliding over 3%.

The market’s reaction to the tariffs highlights the potential for increased volatility and economic uncertainty in the coming months.