Markets Wince: Dow Plunges 100 Points as Trump’s Tariff Threats Tank S&P 500 and Nasdaq

Wall Street's morning optimism got steamrolled by the return of a familiar specter—protectionist politics. The Dow Jones Industrial Average nosedived triple digits at the open, dragging the S&P 500 and Nasdaq into the red with it.

Tariff Tantrum 2.0?

Former President Trump's renewed trade war rhetoric sent shockwaves through equities—proving once again that markets hate uncertainty more than they love tax cuts. Analysts scrambled to adjust models while algorithmic traders piled into haven assets.

The selloff exposed the fragility of this year's rally—built on AI hype and rate cut fantasies rather than old-fashioned fundamentals. As one syndicate desk trader quipped: 'Guess we're back to pricing politics instead of P/E ratios.'

Trump threatened 10% tariff on BRICS

While investors have expected tariff implementation, fresh concerns have emerged after Trump threatened to impose an extra 10% tariff on countries aligned with BRICS—a new bloc of partner nations that includes Brazil, Russia, India, and China.

Stocks fell sharply after Trump’s “Liberation Day” tariffs earlier in the year, before rebounding off a slow April to hit record highs in June. Gains, which also reflected across risk assets such as cryptocurrencies, came amid Trump’s 90-day pause on tariffs, and agreements with the United Kingdom and China.

Despite the geopolitical tensions that rocked the Middle East, stocks remained on an upward course, with the S&P 500 NEAR the key 6,300 level that Bank of America analysts recently said could mark a potential sell signal.