Wall Street Falls as Trump’s ‘Liberation Day’ Sparks Tariff Fears; Nasdaq Drops Over 1.7%

S&P 500, Dow Jones, and Nasdaq continue to slide as investors brace for sweeping tariffs set to take effect April 2. Microsoft, Tesla, Nvidia among biggest losers.

March 31, 2025: U.S. stock markets extended their decline on Monday morning amid rising anxiety over potential trade disruptions linked to former President Donald Trump’s so-called “Liberation Day” on April 2, when new tariffs are expected to be announced.

Also Read: Trump Declares April 2 as ‘Liberation Day’ With Sweeping Tariffs on Global Trade Partners

By 10:10 AM ET, all three major indices were trading in the red:

• S&P 500 fell 0.8%
• Dow Jones Industrial Average dropped 0.3%
• Nasdaq Composite plunged 1.7%

The losses reflect investor unease ahead of Trump’s pledge to impose sweeping tariffs on U.S. trading partners, raising fears of retaliatory measures and economic slowdown.

Also Read: Tariff Turmoil: Chinese Factories Bleed as Trump’s Trade War Escalates

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Recession Fears Mount

Goldman Sachs responded to the latest developments by raising the probability of a U.S. recession to 35% (up from 20%), and slashed its year-end forecast for the S&P 500. The firm also anticipates additional rate cuts from the Federal Reserve in response to weakening economic signals.

Also Read: Markets Enter FY26 with Key Triggers: Tariffs, Auto Sales, FII Flow to Drive Sentiment

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Bond Market Reaction

The bond market reflected this sentiment, with the 10-year U.S. Treasury yield dropping from 4.27% on Friday to 4.21%, as investors sought safer assets.

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Biggest Stock Losers Today

Tech and pharma stocks were hit hardest:

• Microsoft plunged 12.6%
• Nvidia dropped 5.3%
• Tesla fell 7%

In the pharmaceutical sector, a major shake-up in the FDA’s vaccine division spooked investors:

• Moderna sank 13%
• Pfizer declined 2.2%
• Taysha Gene Therapies dropped 18.6%
• Solid Biosciences lost 15.2%

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Travel Stocks Also Struggle

United Airlines shares tumbled 6.9% after reports that Canadian travelers were reducing trips to the U.S. due to expected tariff hikes — signaling potential trouble for the broader tourism and airline industries.

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What to Watch

With “Liberation Day” looming on April 2, global markets remain on edge. Investors will be closely watching for:

• Tariff announcements and their scope
• Federal Reserve signals on rate policy
• Corporate reactions, especially from major exporters and tech firms

Tags:

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