Global Stocks Plunge Amid Trump Tariff Uncertainty

Global stock index futures experienced a broad decline, with the Dow Jones futures falling by 2.4%, S&P 500 Index futures dropping by 2.3%, and Nasdaq futures decreasing by 2.5%. This downturn was mirrored in European markets, where Germany's DAX Index plummeted by 5.00%, France's CAC40 Index plunged by 4.5%, Italy's FTSE MIB Index tumbled by 7%, and Spain's IBEX35 Index fell by 6%.

In the commodities market, Brent crude and WTI crude both saw significant declines, each falling by approximately 6%. This drop in oil prices can be attributed to the broader market sentiment and the impact of Trump's aggressive tariff policy, which has created uncertainty and risk aversion among investors.

The US Dollar Index (DXY) experienced a short-term plunge of 40 points, currently trading at 102.11. This decline in the dollar index reflects a shift in investor sentiment towards safer assets, as the uncertainty surrounding trade policies and their potential impact on global economic growth has increased.

The yield on the US 2-year Treasury note dropped to its lowest level since September 2022, currently standing at 3.5205%. This decrease in yields indicates that investors are seeking the safety of government bonds amid the market turmoil, as the uncertainty surrounding trade policies and their potential impact on global economic growth has increased.

Overall, the decline in global stock index futures, the drop in oil prices, and the decrease in US Treasury yields reflect a broader market sentiment of risk aversion and uncertainty. Investors are seeking safer assets and avoiding riskier investments in response to the potential impact of Trump's aggressive tariff policy on global economic growth.