US stock futures fall, gold rises after Trump's tariff announcements

U.S. stock futures suffered significant losses, and the price of gold rose after Trump announced new trade tariffs. This is reported by Reuters, reports UNN.

Details

According to reports, S&P 500 and Nasdaq futures fell after Trump clarified his tariff plans, which significantly exceeded market expectations.

Initially, futures prices rose when Trump said the new tariffs would start at a base rate of 10%. However, when he elaborated on tariffs for various U.S. trading partners, including 34% on imports from China, 20% on goods from the EU, and 24% on Japanese products, market sentiment shifted dramatically. S&P 500 futures fell 1.6%, and Nasdaq futures fell 2.4%.

In addition, the president announced new 25% tariffs on cars and auto parts, adding to general investor concerns about the impact of trade restrictions on the global economy.

As global markets struggled to adapt to this news, investors began looking for safer assets. This caused prices of gold and bonds to rise. The price of gold rose 0.64% to $3,130.38 an ounce, and gold futures rose 1.3% to $3,159.30 an ounce.

The decline in stock markets was also accompanied by a decrease in the yield of U.S. Treasury bonds, particularly two-year bonds, which reached their lowest level in three weeks.

Experts note that in the short term, these trade moves could lead to increased costs and reduced corporate profits. However, depending on the reaction of U.S. trading partners, the market may change its assessment of these events in the future.

Recall

Donald Trump has declared a state of emergency to improve the U.S. economy and security. Starting April 5, 2025, a 10% base tariff will be introduced on imports, except for Canada and Mexico.

Trump Declares National Emergency to Strengthen US Economy03.04.25, 01:12 • 11549 views