On April 3, the S&P 500 started the day down 3.65%, with pre-market quotes at $543.89, following President Trump’s announcement regarding extensive tariff measures.
[Update: Once the market opened, it rebounded 1% during the early trading hours.]
This policy change imposes a blanket 10% tariff on all imports, coupled with targeted reciprocal tariffs that may reach 48%, leading to increased volatility across global markets.
Traders reacted quickly to the change, which removed exemptions for key categories such as raw materials and medical supplies.
This development reversed a previously optimistic sentiment in the digital asset sphere, as Bitcoin fell from a session peak of $88,500 to under $82,000 as of the latest update.
The cryptocurrency market experienced liquidations totaling $486.55 million in just 24 hours, predominantly from short positions on major exchanges, while BitMEX saw liquidations mainly among long positions.
The risk-averse sentiment spilled over into traditional equities, with the FTSE 100 Index declining by 1.75% to 8,457.71 at the time of reporting. Additionally, the Polymarket prediction platform noted a significant rise in recession odds, with the estimated probability of a U.S. recession in 2025 rising from 42% to 52% overnight—its largest daily increase this year.
Throughout Tuesday’s trading, the S&P 500 faced consistent declines, culminating in a sharp selloff after hours that underscored the broader economic consequences of the policy. Analysts voiced concerns about rising inflation, escalating input costs, and unresolved supply chain issues.
Furthermore, discrepancies in the tariff benchmarking data have emerged, as figures provided by the Trump administration differ from those of the WTO and World Bank, casting doubt on the policy’s long-term effectiveness.
Markets are now adjusting to the reemergence of trade-related economic tensions. Bitcoin was last observed trying to maintain the $82,000 support level amidst ongoing pressure from liquidity-driven sell-offs.
If the S&P 500 closes close to its expected opening price, it would mark the 11th largest single-day drop in its history.