Wall Street Bleeds: Trump’s Tariff Tsunami Triggers Major Selloff in US and Indian IT Stocks

US indices plunge as S&P 500 drops 3.3%, Nasdaq tanks 4.5%, while Indian IT giants like Persistent, Coforge, TCS and Infosys see sharp declines amid tariff uncertainty.

April 3, 2025 | Wall Street reeled under pressure on Thursday after US President Donald Trump’s sweeping “Liberation Day” reciprocal tariffs jolted investor sentiment worldwide. The S&P 500 slumped 3.3%, Dow Jones fell 2.7%, and Nasdaq plunged 4.5% as markets digested the prospect of rising global trade tensions.

Also Read: Stock Market Highlights: Trump Tariff Exemptions Boost Pharma, But Nifty Ends Below 23,300

The trigger: Trump’s new trade policy announcing 10% baseline tariffs on all imports and reciprocal tariffs on 60 nations, including India (27%), China (34%), and Vietnam (46%).

Also Read: Trump Tariffs Target Remote Penguin Island With No Human Inhabitants

IT Sector Hit Hard

Back in India, IT stocks bore the brunt. Despite no specific tariff imposed on IT services, fears of a prolonged global slowdown and reduced tech outsourcing led to heavy selling.

Also Read: Donald Trump’s ‘Liberation Day’ Tariffs Explained: 10 Key Points on What Changes From April 5

• Persistent Systems: –9.92%
• Coforge: –7.77%
• KPIT Technologies: –7.66%
• TCS: –3.98%
• Tech Mahindra: –3.79%
• Infosys: –3.41%
• Wipro: –2.75%

The BSE IT index crashed 3.78%, shedding over 1,348 points to settle at 34,293.59.

Market analysts worry the reciprocal tariff war could choke demand pipelines, disrupt tech spending, and delay critical deal closures for Indian firms.

Investor Sentiment Weakens

The BSE Sensex slipped 322 points to 76,295.36, while broader indices reflected nervousness. Pharma stocks, however, saw a bounce, with Nifty Pharma rising 4.7%, thanks to exemption from tariff hikes.

Meanwhile, market experts warned of downside risks to global growth, with Morgan Stanley calling the policy shift “a serious headwind for emerging market exporters.”

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