S&P 500 Plummets 3.65% on Trump Tariffs

The S&P 500 experienced a significant decline, opening 3.65% lower on April 3, with pre-market pricing at $543.89. This drop followed President Donald Trump’s announcement of sweeping tariff policies, which introduced blanket 10% tariffs on all imports and targeted reciprocal tariffs of up to 48%. The move eliminated exemptions for critical categories, including raw materials and medical supplies, injecting renewed volatility into global markets.

Traders responded swiftly to the policy shift, leading to a sharp selloff in traditional equities. The FTSE 100 Index shed 1.75% as of press time to 8,457.71. The risk-off sentiment extended to digital asset markets, with Bitcoin falling from a session high of $88,500 to below $82,000 by press time. The crypto market saw significant liquidations, with short positions across major exchanges leading the way.

The S&P 500 dropped steadily throughout Tuesday’s session, with a sharp after-hours selloff aligning with the policy’s broader economic implications. Analysts have raised concerns about inflationary pressures, heightened input costs, and unresolved supply chain dependencies. Questions have also emerged over the tariff benchmarking data, as figures cited by the Trump administration diverge from WTO and World Bank references, raising doubts over the policy’s long-term viability.

Markets are now recalibrating in response to the return of trade-based economic brinkmanship. Bitcoin was last seen attempting to hold the $82,000 level amid continued pressure from liquidity-driven selloffs. If the S&P 500 closes near its expected opening price, it will be the 11th largest single-day drop in history.