Tech stocks and crypto prices crater over Trumps trade war
"We're gonna win so much, you may even get tired of wining," said Donald Trump at one of his pre-election speeches. A couple of months later, it doesn't really feel like winning.
After two devastatingly tough days for the U.S. stocks and cryptocurrencies, with the S&P 500 dumping more than 10 percent over Thursday and Friday, many market participants were likely hoping for some relief on Monday. However, major indices are down hard once again in premarket trading, with S&P 500 diving below 5000 for the first time since April 2024.
Big tech stocks are having a particularly bad day so far, with Apple down to $180 per share in premarket trading, Nvidia at $89.4 per share, and Tesla at $222 per share. For Tesla alone, whose stock price reach an all-time-high of $489 per share in December 2024, this is a 55 percent decline.
Cryptocurencies aren't having a great day, either, with Bitcoin trading at $76,130, and Ethereum trading at $1486 at writing time. It's worth remembering that Bitcoin was trading above $109,000, and Ethereum above $4,100, just four months ago.
The culprit is obvious: The tariffs that the Trump's administration imposed on nearly ever trading partner (and some penguins) were far more radical than the market expected, with basically the entire world being suddenly thrown into a potentially devastating trade war. In just one example, there are already calculations that Apple might increase iPhone prices by up to 43%, with the cheapest iPhone 16 going from $799 to $1,142.
Of course, no one knows exactly what will happen due to potential deals being brokered between the U.S. and its trading partners, but therein lies the rub: The markets don't like uncertainty, and the current situation is as uncertain as can be.
It's not just Wall Street that's unhappy with Trump's idea of fixing America. In a Saturday rally in Washington, DC and other U.S. cities, thousands gathered to protest some of the moves the Trump administration has made so far.