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

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

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.

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%

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.

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

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Misha Bhatia