D-Street braces for sharp volatility as global markets, US futures crash on Trump's aggressive tariffs

The Indian equity market is expected to see sharp volatility today, in sync with global peers, after U.S. President Donald Trump announced aggressive than anticipated tariffs, triggering widespread market turmoil. The decision to impose a 10% tariff on all U.S. imports, with additional duties on major trading partners, left investors jittery amid concerns that these duties will severely hinder global economic growth and drive up inflation.

The weak cues from global markets, with U.S. futures crashing over 4% and Japanese market falling over 3%, indicate a negative opening for the domestic bourses. The negative trends in GIFT Nifty Futures also signaled a gap-down opening for the benchmark indices Sensex and Nifty. At 8:20 AM, GIFT Nifty Futures were down 251 points at 23,180.

On Wednesday, the domestic market ended higher ahead of highly anticipated tariff announcements. The BSE Sensex ended 592.93 points, or 0.78%, higher at 76,617.44, and the NSE Nifty50 settled up by 166.65 points, or 0.72%, at 23,332.35. The market witnessed a decent bounce back after the sharp sell-off on Tuesday amid trade war fears. 

Dow futures nosedives 1,000 pts as Trump unveils aggressive tariffs

Wall Street reacted sharply to President Trump's announcement of significantly harsher-than-expected tariffs. His newly announced, aggressive tariffs - a 10% baseline on all U.S. imports and higher rates for key partners - sent global markets reeling. Investors worry the move will stifle economic growth, hurt corporate profits, and fuel inflation, intensifying an existing trade conflict.

At the time of reporting, the Dow Jones Industrial Average Futures were down 1,069 points, or 2.5%, the S&P 500 futures plunged 3.6%, and Nasdaq-100 futures crashed 4.5%.

In the overnight trade, the Nasdaq Composite ended 0.87% lower, the S&P 500 added 0.67%, and the Dow Jones climbed 0.56% ahead of Trump’s tariff announcements.

Asian stocks fall on trade war fears; Japanese market crashes 3%

Share markets in the Asia-Pacific region plummeted in early trade on Thursday after U.S. President Donald Trump slapped hefty reciprocal tariffs on over 180 countries, including a duty of 34% on China as well as 24% on Japan. This move ignited fears of a global economic slowdown, rising inflation, and escalating an already tense trade war.

Reacting to the news, Japan's Nikkei 225 crashed 3%, while Hong Kong's Hang Seng dropped by 1.3%, and South Korea's Kospi fell 1.2%. In mainland China, the Shanghai Composite traded flat and the Shenzhen Composite dived 0.9%. Australia's ASX 200 ended 1.15% lower.

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