Market Turmoil Continues Following Trump’s Tariffs Announcement
It’s been a rough ride for the markets since Donald Trump’s pre-election speech where he boasted, “We’re gonna win so much, you may even get tired of winning.” Two months later, the feeling is far from winning. The US stocks and cryptocurrencies have experienced devastating losses over two consecutive days, with the S&P 500 plummeting over 10% on Thursday and Friday. On Monday, major indices continued their downward trend in premarket trading, with the S&P 500 diving below 5000 for the first time since April 2024.
Big tech stocks are having a particularly tough day, with Apple dropping to $180 per share, Nvidia at $89.4 per share, and Tesla at $222 per share in premarket trading. Tesla’s stock price, which reached an all-time high of $489 per share in December 2024, has seen a staggering 55% decline. The cryptocurrency market is also suffering, with Bitcoin trading at $76,130 and Ethereum at $1486 at the time of writing. Both currencies were trading significantly higher just four months ago, with Bitcoin above $109,000 and Ethereum above $4,100.
The primary cause of this market turmoil is the radical tariffs imposed by the Trump administration on nearly every trading partner, throwing the world into a potential trade war. Calculations suggest that Apple may increase iPhone prices by up to 43%, with the cheapest iPhone 16 potentially rising from $799 to $1,142. The uncertainty surrounding potential deals between the US and its trading partners is exacerbating the situation, as markets dislike uncertainty.
The dissatisfaction with Trump’s policies isn’t limited to Wall Street. Thousands gathered in Washington, DC, and other US cities on Saturday to protest some of the Trump administration’s moves. The uncertainty and potential consequences of these policies continue to weigh heavily on the markets and the public.
As the situation develops, the market’s reaction will depend on the outcomes of potential trade negotiations. For now, the trend continues downward, reflecting the anxiety and uncertainty surrounding the Trump administration’s economic policies.
