US stocks plunged in after-hours trading Wednesday as investors reacted to President Donald Trump’s announcement of sweeping tariffs that could escalate a growing trade war and disrupt the global economy. Dow futures plummeted more than 1,100 points, or 2.7%. S&P 500 futures sank 3.9%.
Futures tied to the Nasdaq 100 fell 4.7%. Key Asian stocks also fell shortly after opening on Thursday, hours after the broad-based tariffs were announced. Japan’s benchmark Nikkei 225 index tumbled at least 4%.
South Korea’s KOSPI dropped 2.7%, and Hong Kong’s Hang Seng Index slid 2.4%. “Trump is enacting a very aggressive tariff policy, far more aggressive than most investors thought possible six months ago,” said Jed Ellerbroek, portfolio manager at Argent Capital. “Painful times for stock market investors.”
The selloff turned into a rout Wednesday evening as investors reckoned with the extent of Trump’s tariffs.
Apple tumbled more than 7% in after-hours trading.
Trump’s tariff impact on markets
The tech giant relies extensively on supply chains in China, which will be subject to steep tariffs.
Other stocks leading the market lower included Tesla, which fell more than 6%, and Amazon, which fell more than 5%. Nike plunged 7%, and Walmart fell 6%. “President Trump just finished his tariff speech at the White House, and we would characterize this slate of tariffs as ‘worse than the worst-case scenario’ the Street was fearing,” said Dan Ives, senior analyst at Wedbush Securities, in a note.
Ives highlighted Trump’s hefty reciprocal tariffs on China, bringing its rate to 54%. As stocks tanked, members of the Trump administration appeared unfazed. US Treasury Secretary Scott Bessent told Bloomberg that a selloff in stocks was “a Mag 7 problem, not a MAGA problem,” referring to the “Magnificent Seven” of tech stocks that include Apple, Amazon, Meta, Microsoft, Google, Tesla, and Nvidia.
Economists expect that Trump’s sweeping tariffs could disrupt global supply chains, stoke inflation, and drag on economic growth. JoAnne Bianco, chief investment strategist at BondBloxx, said the US will continue to experience elevated uncertainty and market volatility as investors assess the “detrimental economic impact” of Trump’s tariffs. “The roller coaster ride continues as the initial leaks were positive…but then the details were released, and they were far worse than expected,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management.
“The silver lining for investors could be that this is only a starting point for negotiations with other countries, and ultimately tariff rates will come down across the board — but for now, traders are shooting first and asking questions later,” added Zaccarelli.
