Futures plunge, S&P 500 eyes bear territory as market rout worsens

Reuters

Mon, Apr 7, 2025, 2:19 AM 2 min read

(Reuters) - U.S. banal scale futures plummeted connected Monday, and the S&P 500 looked acceptable to corroborate a carnivore market, arsenic investors barreled into authorities bonds connected economical worries implicit the fallout of U.S. President Donald Trump's sweeping tariff plans.

The 10-year U.S. Treasury yields fell to 3.953%, with investors pricing successful a accidental of a 5th interest-rate chopped from the Federal Reserve this year.

S&P 500 futures plunged much than 20% from their peak, suggesting the benchmark scale has been successful a carnivore marketsince February if it closes down 20% from its all-time highs.

Trump told reporters precocious connected Sunday that investors indispensable endure the consequences and that helium would refrain from negotiating with China until the U.S. commercialized shortage is addressed.

In the 2 sessions aft Trump's tariff decision, the scale has tumbled 10.5%, erasing astir $5 trillion successful marketplace value, marking its astir important two-day nonaccomplishment since March 2020.

By 4:42 a.m. ET (0942 GMT) U.S. S&P 500 E-minis were down 159 points, oregon 3.11%, Nasdaq 100 E-minis were down 598.5 points, oregon 3.41%, Dow E-minis were down 1,178 points, oregon 3.06%.

The CBOE Volatility Index, seen arsenic Wall Street's fearfulness gauge, was up 7.57 points astatine 52.88.

The crisp declines successful the past 2 sessions pushed the tech-heavy Nasdaq into carnivore market, portion the Dow Jones Industrial Average slumped much than 10% from its record-closing high.

The fearfulness of a tariff-led recession caused markets to bring into play the chances of an interest-rate chopped successful May, with traders seeing a 54% possibility.

Meanwhile, the week up is packed with a bid of economical indicators, with user terms information acceptable to instrumentality halfway signifier connected Thursday.

(Reporting by Pranav Kashyap successful Bengaluru; Editing by Arun Koyyur)