Trump's tariff announcements cause stock market sell-off, with analysts fearing further downside risk

From Yahoo Finance: 2025-04-03 11:16:00

President Trump surprised Wall Street with “Liberation Day” tariff announcements, causing a sell-off in stocks. Nasdaq dropped 5%, S&P 500 4%, and Dow Jones 3.5%. Strategists fear further downside risk from retaliatory tariffs and recession potential. Analysts watch for S&P 500 to drop 15% more if tariffs escalate.

Citi and RBC Capital Markets strategists anticipate further earnings cuts and potential bear market if S&P 500 falls below recent lows. Analysts remain cautious as negotiation dynamics and policy saga play out. Market turbulence continues as companies navigate uncertain tariff impacts and stock valuations fluctuate.

Read more: The stock market will be ‘severely tested’ by Trump’s tariffs