US stock market futures took a hit following the latest tariff announcements from President Donald Trump.
At the same time, nearly $500 billion was pulled from cryptocurrency markets in just 24 hours.
On February 3, Nasdaq 100 futures fell about 2.7%, according to Finviz. Other major indexes also opened lower, with the Russell 2000 dropping 3.2% and the S&P 500 down 2%.
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The market decline followed Trump’s decision to impose tariffs on imports from Canada, Mexico, and China, set to take effect on February 4. The policy includes a 25% tariff on goods from Canada and Mexico and a 10% tariff on Chinese imports.
Tobin Marcus, head of US policy and politics at Wolfe Research, stated, “Markets may now need to take the rest of Trump’s tariff agenda literally rather than just seriously. If this new level of seriousness gets priced in suddenly, Monday could be a rough day for markets”.
Additionally, George Saravelos, head of FX research at Deutsche Bank, noted that markets must adjust to a higher level of risk from trade tensions. He said:
The market needs to structurally and significantly reprice the trade war risk premium with the announcements at the weekend roughly three times larger than what was envisaged.
However, Jeff Park, BitWise’s head of alpha strategies, recently stated that US tariffs could boost Bitcoin
$99,074.70
in the long run. How? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
