FameEX Hot Topics | Nasdaq Futures Fall 2.7% as Trump’s Trade War Stirs Market Turmoil

U.S. stock market futures are in the red, indicating a potentially volatile week as traders react to recent developments. Futures tied to the three major U.S. stock indexes experienced a sharp drop following President Donald Trump’s announcement of new trade tariffs on China, Mexico, and Canada. Additionally, nearly $500 billion left the crypto market over the past 24 hours, intensifying market concerns.

On February 3, Nasdaq 100 futures fell by almost 2.7%, as reported by Finviz. Other major U.S. equity futures also showed significant declines, with the Russell 2000 small-cap index dropping 3.2%, the S&P 500 down 2%, and Dow Jones Industrial Average futures slipping about 1.5%. This sell-off reflects investor anxiety about Trump’s trade policies and their potential global economic consequences.

Equity futures are financial instruments that allow investors to speculate on or hedge against the future value of U.S. stock indexes like the Nasdaq 100, which tracks the 100 largest non-financial companies on the U.S. stock exchange. The recent slump in futures markets is largely a reaction to Trump’s tariffs, which are scheduled to take effect on February 4.

The new tariffs include a 25% tax on imports from Canada and Mexico and a 10% levy on China. Experts like George Saravelos from Deutsche Bank suggest that markets will have to reassess the “trade war risk premium,” as these tariffs are far higher than initially expected. Wolfe Research’s Tobin Marcus warned that markets may need to treat Trump’s entire tariff agenda with greater urgency, anticipating further volatility, especially on Monday.

Meanwhile, the cryptocurrency market has also suffered substantial losses. In the last 24 hours, the total market capitalization of cryptocurrencies dropped by over 13%, as $450 billion exited the market. The market cap has fallen to $3.12 trillion, its lowest level since mid-November. Despite this, some analysts believe that Trump’s trade war could eventually boost Bitcoin’s price due to a weakening dollar and lower yields on U.S. government bonds.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.