Stock market today: S&P 500, Nasdaq plunge, Dow drops 1,300 points as Trump’s tariffs rip through markets worldwide

Investors are rerating their expectations for the Federal Reserve as President Trump’s hefty tariffs are expected to weigh on US economic growth.

Markets are now pricing in four interest rate cuts for 2025, up from the range of two or three just a week prior, per Bloomberg data.

Renaissance Macro head of economics Neil Dutta wrote in a note Thursday morning that he expects the Fed to cut “at least four times.” Dutta believes the lag in growth from tariffs will become the paramount concern rather than the potential upside to inflation.

Homebuilder stocks struggled on Thursday as President Trump’s tariff plans threw a major wrench into the sector, fueling fears that higher construction costs could slow the housing recovery.

D.R. Horton, Inc. (DHI), the biggest US homebuilder, was down 3% Thursday, while Lennar (LEN) and PulteGroup (PHM) fell more than 4%, respectively. The SPDR S&P Homebuilders ETF (XHB) also declined 5%.

Trump unveiled the details of his major tariff plan on Wednesday, offering exemptions for Canada and Mexico which provided relief to the two biggest trading partners. However, China remains in the crosshairs, still facing the full brunt of the new tariffs, with rates now well above 50% on many goods.

Steel, aluminum, and other metals are exempt, and lumber was also spared from the new measures.

“While the complexity of these reciprocal tariffs makes it hard to estimate the overall impact on housing, they will undoubtedly raise some construction costs,” NAHB chairman Buddy Hughes said in a statement following President Trump’s tariff announcement.

“However, NAHB is pleased President Trump recognized the importance of critical construction inputs for housing and chose to continue current exemptions for Canadian and Mexican products, with a specific exemption for lumber from any new tariffs at this time,” Hughes added.

Tech and Consumer Discretionary stocks led market losses on Thursday with “Magnificent 7” stocks plummeting following President Trump’s reciprocal tariff announcement.

E-commerce giant Amazon (AMZN) declined more than 9% while iPhone maker Apple (AAPL) sank more than 8%, nearing a wipeout of almost $300 billion in market cap.

The Trump administration’s newly announced tariffs include levies on imported goods from China to the tune of 54%, while products from Vietnam include duties of 46%.

Nvidia (NVDA) sank more than 6% after the AI giant was also downgraded to Hold from Buy at HSBC.

Medical device stocks fell on Thursday amid a broader market sell-off pinned to the Trump administration’s sweeping reciprocal tariffs.

GE Healthcare stock (GEHC) tumbled more than 10% while Intuitive Surgical (ISRG) was down more than 2% in early trading.

Yahoo Finance’s Anjalee Khemlani reports:

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Economic activity in the services sector slowed more than expected in March.

New data from the Institute of Supply Management out Thursday showed its services PMI decreased to 50.8 in March, down from 53.5 in February. Readings above 50 indicate expansion in the sector; readings below indicate a contraction in activity.

“Despite an increase in comments on tariff impacts and continuing concerns over potential tariffs and declining governmental spending, there was a close balance in near-term sentiment, between panelists with good outlooks and those seeing or expecting declines,” Steve Miller, the chair of Institute for Supply Management, wrote in the release.

Given President Trump’s larger-than-expected tariff announcements on Wednesday have already spooked fears about economic growth slowing, Oxford Economics senior US economist Matthew Martin wrote that Thursday’s release will “exacerbate concerns over the health of the economy.”

“An initial assessment of the impact of recent tariff announcements will lead us to lower our growth forecast markedly,” Martin wrote. “Odds are the economy avoids a recession, but it will be dangerously vulnerable.”

Stock losses accelerated on Thursday morning as the Trump administration’s tariffs against US trading partners sparked fears that a trade war will lead to an economic slowdown or recession.

By 10:40 a.m. ET, the tech-heavy Nasdaq Composite (^IXIC) had tanked as much as 5%. The S&P 500 (^GSPC) tanked more than 4%. The Dow Jones Industrial Average (^DJI) tumbled more than 3.5% — over 1,500 points.

Consumer Discretionary stocks were getting slammed during the session, with e-commerce giant Amazon (AMZN) down more than 9%.

Gold futures (GC=F) pulled back from their record high on Thursday morning but were still outperforming the rest of the commodity complex as investors reacted to President Trump’s reciprocal tariff announcement.

Futures fell more than 1% amid an overall market sell-off. Meanwhile, copper (HG=F) sank nearly 4% over fears of deteriorating demand in an escalating trade war.

Other commodities also fell following Trump’s announcement on Wednesday imposing tariffs on its trading partners.

Oil sank more than 7% with losses accelerating after the Organization of Petroleum Exporting Countries and its allies (OPEC+) announced it will hike oil supplies more than expected in May.

Yahoo Finance’s Brian Sozzi writes:

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Stocks tanked on Thursday morning in reaction to President Trump’s broad reciprocal tariff announcement, sparking fears of a looming recision amid a full-blown trade war.

The tech-heavy Nasdaq Composite (^IXIC) plummeted more than 4% while the S&P 500 (^GSPC) tanked 3.7%. The Dow Jones Industrial Average (^DJI) tumbled nearly 3% — over 1,100 points.

From retail to Big Tech, equities across the board tumbled. Megacap giants like Apple (AAPL) sank more than 7% over concerns of a disruption to supply chains in China, the source of key iPhone components. Nvidia (NVDA) and other chip stocks also declined amid similar concerns.

Meanwhile, oil futures tanked more than 7% after members of the Organization of Petroleum Exporting Countries and its allies (OPEC+) agreed to hike supply more than expected in May, deepening price declines sparked by President Trump’s reciprocal tariff announcement.

The prospect of a trade war sparking a slowdown — or worse, a recession sent commodities lower across the board.

Yahoo Finance’s Brian Sozzi writes:

Read more here.

Oil futures tanked more than 6% on Thursday morning after members of the Organization of Petroleum Exporting Countries and its allies (OPEC+) agreed to hike supply more than expected in May, deepening price declines sparked by President Trump’s reciprocal tariff announcement.

West Texas Intermediate (CL=F) fell to hover below $67 per barrel, while Brent (BZ=F), the international benchmark price, declined to $70.

The oil cartel’s decision to add 411,000 barrels a day to the market next month steepened losses in futures contracts after the Trump administration announced sweeping tariffs on its trading partners.

While energy was exempt from the levies announced on Wednesday, the move escalated the trade war, raising concerns about global demand. The tariffs sparked fears of economic slowdown, affecting oil markets.

Tariffs on goods imported from China now total 54%. The Asian country is the world’s largest importer of crude oil.

“54% tariff on China is a significant negative surprise. The tariffs on growing emerging economies that contribute most to crude demand growth (not absolute demand) are getting hit the hardest,” CIBC Private Wealth senior energy trader Rebecca Babin told Yahoo Finance.

Data from the Department of Labor released Thursday morning showed 219,000 initial jobless claims were filed in the week ending March 29, down from 225,000 the week prior and below the 225,000 economists had expected.

Meanwhile, 1.9 million continuing claims were filed, up by 56,000 from the week prior. This marked the highest level of continuing claims for unemployment benefits since November 2021.

In a separate release from data from job placement firm Challenger, Gray & Christmas showed job cuts soared in February to 275,240 in March, up from 172,017 in February. More than 216,000 of those cuts were related to Elon Musk’s Department of Government of Efficiency (Defforts.

“Job cut announcements were dominated last month by Department of Government Efficiency [DOGE] plans to eliminate positions in the federal government. It would have otherwise been a fairly quiet month for layoffs,” Andrew Challenger, senior vice president and workplace expert for Challenger, Gray & Christmas said in a release.

Auto stocks fell in premarket trading Thursday as President Trump’s 25% auto tariffs took effect. However, the losses weren’t as severe as in other sectors like tech and retail.

Tesla stock (TSLA) led the declines, dropping 5.8%, as smaller sales of its EVs in Germany and yesterday’s deliveries number also weighed on the stock. Shares of Tesla rose on Wednesday on reports that CEO Elon Musk would step back from his government role in the coming weeks.

As for the Big Three automakers, General Motors stock (GM) fell 2.7%, Ford (F) declined 2%, and Stellantis (STLA) was down 1.3%.

European automakers BMW (BMW.DE), Mercedes-Benz (MBG.DE), and Volkswagen (VOW3.DE) all fell 2%, while Ferrari (RACE) and Porsche (P911.DE) were down over 1%.

Hyundai (HYMTF) and Honda (HMC) were down more than 1.5%, while Toyota (TM) fell 3.6%.

Bloomberg reports:

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Copper (HG=F) futures fell 2.6% on Thursday morning amid worries that a slowdown would dampen demand for the industrial metal.

Prices lost ground even after the White House indicated that energy, steel, copper, and gold would be exempt from the tariffs announced on Wednesday, in what President Trump called “Liberation Day.”

But oil futures tanked after the US imposed reciprocal tariffs on goods imported from other countries, which fueled concerns of an economic slowdown that would hit demand.

West Texas Intermediate crude (CL=F) dropped 6% to trade below $68 per barrel, while Brent futures (BZ=F) also declined almost 6% to under $71 a barrel.

Elsewhere in the commodity complex, gold futures (GC=F) retreated 1.7% as precious metals joined the global sell-off in assets. Prices initially surged after Trump’s announcement, but have since reversed gains in a retreat from the records recently hit as investors sought safe haven.

Yahoo Finance’s Brian Sozzi reports:

Read more here.

Before the bell, futures tied to the Nasdaq led the way down — almost 4%. Dow futures dropped over 1,200 points, and S&P 500 futures tanked by 3.4%.

Economic data: Challenger jobs cuts (March); Initial jobless claims (week ending Mar. 29); S&P Global US composite PMI (March final); S&P Global US services PMI (March final); ISM services index (March)

Earnings: Conagra Brands (CAG), Lamb Weston (LW), Guess (GES)

On Wednesday, President Trump unveiled plans for reciprocal tariffs on countries worldwide, starting at 10%, with additional duties for nations labeled the “worst offenders.” The move unsettled markets on Thursday as investors reacted to the news.

Here are some of the biggest stories you may have missed overnight and early this morning:

Trump sets 10% global tariff, slaps bigger duties on certain partners

Trump’s tariffs make the likes of Nike un-investable: What Wall Street is saying

Here’s every country facing Trump’s ‘Liberation Day’ tariffs

Investors hunt for tariff-proof trades as new trade reality hits

‘Biggest tax hike’ since the ’40s: How Trump’s tariffs could bite

Here’s every country facing Trump’s ‘Liberation Day’ tariffs

Nvidia, TSMC, chip stocks fall on sweeping reciprocal tariffs

Musk stepping away from DOGE could benefit Trump and Tesla

China stocks, yuan tumble after bigger-than-expected Trump tariffs

Oil prices dropped after US President Donald Trump imposed harsh tariffs on key trading partners, including China and the EU. While energy was exempt, the move escalated the trade war, raising concerns about global demand. The tariffs sparked fears of economic slowdown, affecting oil markets.

Brent crude (BZ=F) declined as much as 4% to $71.55 a barrel, tracking a slump in wider markets.

Bloomberg News reports:

Read more here.

Apple (AAPL) shares fell over 7% before the bell, still leading the sell-off in tech stocks that followed Trump’s bigger-than-expected tariffs.

Apple’s overseas production hubs are particularly vulnerable, given the iPhone maker’s presence in China, Vietnam, and India. These countries will face tariffs of 34%, 46%, and 26%, respectively, once additional levies are taken into account.

“Apple produces basically all their iPhones in China, and the question will be around exceptions and exemptions on this tariff policy if those companies are building more operations, factories, and plants in the US like Apple announced in February,” Wedbush analyst Dan Ives said in a note to clients on Wednesday.

Elsewhere in techs, chip stocks should also face significant pressure, with Nvidia (NVDA) and others exposed to China and Taiwan supply chains.

“The worry will be around pricing and margin impacts along with what this means for the global supply chain looking forward,” Ives said.

For now, the analyst continues to believe major negotiations will happen over the coming months as companies attempt to navigate “this new world of tariffs.” Until then, he warned, “tech stocks will clearly be under major pressure.”

Gold (GC=F) pulled back on Thursday after hitting a fresh record, as President Donald Trump’s broad “reciprocal” tariffs rattled global markets.

Bloomberg News reports:

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