US stock market futures took a hit following the latest tariff announcements from President Donald Trump.
At the same time, nearly $500 billion was pulled from cryptocurrency markets in just 24 hours.
On February 3, Nasdaq 100 futures fell about 2.7%, according to Finviz. Other major indexes also opened lower, with the Russell 2000 dropping 3.2% and the S&P 500 down 2%.
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The market decline followed Trump’s decision to impose tariffs on imports from Canada, Mexico, and China, set to take effect on February 4. The policy includes a 25% tariff on goods from Canada and Mexico and a 10% tariff on Chinese imports.
Tobin Marcus, head of US policy and politics at Wolfe Research, stated, “Markets may now need to take the rest of Trump’s tariff agenda literally rather than just seriously. If this new level of seriousness gets priced in suddenly, Monday could be a rough day for markets”.
Additionally, George Saravelos, head of FX research at Deutsche Bank, noted that markets must adjust to a higher level of risk from trade tensions. He said:
The market needs to structurally and significantly reprice the trade war risk premium with the announcements at the weekend roughly three times larger than what was envisaged.
However, Jeff Park, BitWise's head of alpha strategies, recently stated that US tariffs could boost Bitcoin
