We’re starting this week with rising U.S. stock market crash fears as futures plunged once again early Monday. Dow futures dropped a sharp 351 points, or 0.9%, while S&P 500 and Nasdaq-100 futures followed suit with declines of 1% and 1.1% respectively.
This marks the third weekly decline out of the last four for Wall Street’s major indexes. Even though the S&P 500 managed to end Thursday slightly higher, it still closed the holiday-shortened week down 1.5%. The Dow Jones and Nasdaq Composite wrapped up their third straight losing session, each sliding more than 2% over the past four trading days.
Markets were closed Friday due to Good Friday, but that didn’t stop the weekend news from fueling more volatility.
What’s Driving the Downtrend?
The primary driver behind these fresh U.S. stock market crash fears is President Trump’s aggressive stance on tariffs. Since April 2, when Trump announced new levies on imports, the markets have lost around 7%. The uncertainty surrounding global trade deals has made investors cautious, with little progress being reported in trade negotiations.
In a recent interview on CBS, Chicago Fed President Austan Goolsbee warned that economic activity in the U.S. could “fall off” by summer due to the impact of tariffs. This comes on the heels of Federal Reserve Chair Jerome Powell voicing concern over how the tariffs may complicate efforts to manage inflation and maintain growth.
Even more alarming, Trump hinted at removing Powell and pressured the Fed to cut interest rates—a move that’s now raising questions about the independence of the Federal Reserve. This political pressure is yet another source of macro-anxiety for investors.
Investors Are Getting Nervous
Analyst Adam Crisafulli from Vital Knowledge pointed out that Trump’s ongoing trade war and threats to the Fed’s independence are causing a shift away from American financial assets. In his words:
“The concurrent slump in stocks, the USD, and Treasuries suggests Trump’s trade war has set in motion an exodus from American financial assets that no amount of negotiating can reverse.”
The U.S. dollar index has already dropped over 1% to 98.13, while gold prices have surged to new record highs, rising 2.4% above $3,400 per ounce. This shows clear signs of a flight to safety.
Tech and Earnings in Focus
Tech is also weighing down the markets. Nvidia shares saw a nearly 6% drop last week after the company disclosed a $5.5 billion charge related to restrictions on exporting its H20 GPUs to China and other destinations.
Looking ahead, this week is critical for earnings. Over 100 S&P 500 companies are set to report their quarterly results. This includes tech giants like Alphabet and Tesla, as well as industrial players like Boeing. These earnings could either ease or add fuel to the ongoing U.S. stock market crash fears.
Final Thoughts
Right now, the market is dealing with a perfect storm: tariff tensions, shaky Fed dynamics, declining investor confidence, and underwhelming corporate news. If things don’t stabilize soon, we may see a broader correction.
Stay tuned—I’ll be tracking these stories closely and updating you all throughout the week.
If you’re trading or investing, make sure you’re keeping risk in check and watching the macro signals. The U.S. stock market crash fears are real, and the next few days could be crucial.
