U.S. stock futures experienced a significant decline on Monday following a tumultuous week for the stock market, which was largely driven by escalating fears that President Donald Trump's recent trade policies could ignite a full-blown trade war. Investors are increasingly concerned that these developments may lead to rising prices for consumers and potentially trigger a recession.

On Wednesday, President Trump announced a controversial decision to impose a 10% tariff on imports from all countries, a move that officially went into effect over the weekend. This decision is part of a broader strategy targeting several nations, particularly in Asia, which will face even steeper tariffs set to commence on April 9. In a swift response, China retaliated by implementing its own tariffs, matching the U.S. with a staggering 34% on all American imports. This exchange has caused alarm among global leaders, many of whom have condemned Trump’s actions and have threatened to introduce their own retaliatory tariffs.

The swift and aggressive nature of these retaliatory tariffs sent shockwaves through the stock market. The Dow Jones Industrial Average, a key indicator of U.S. economic health, suffered back-to-back losses totaling over 1,500 points, marking the first time in history that it has experienced such drastic declines in consecutive trading sessions. In particular, Friday's plunge of 2,231 points was the most significant one-day drop for the index since the coronavirus pandemic began in March 2020. Meanwhile, the S&P 500 index recorded its largest single-day loss since that same month and is now teetering on the brink of a bear market, which is characterized by a decline of at least 20% from its recent peak. The tech-heavy Nasdaq index has already entered bear market territory.

Despite the severe impact on the stock market, the Trump administration remains resolute in its stance. President Trump continues to encourage the American public to 'hang tough' in the face of economic turbulence. Commerce Secretary Howard Lutnick emphasized in an interview with CBS News that there would be no delays in the implementation of the tariffs. Treasury Secretary Scott Bessent, in a separate NBC interview, revealed that approximately 50 countries have reached out to the administration seeking negotiations regarding these trade policies. However, he cautioned that these discussions could be protracted. Bessent also expressed confidence that the tariffs would not necessarily lead to a recession.

As of the latest trading reports, futures for the Dow Jones Industrial Average were down by 3.75%, while the S&P 500 futures had fallen by 4.02%. Notably, the tech-focused Nasdaq futures plunged by an alarming 4.36%.

Greg McBride, Chief Financial Analyst at Bankrate, provided insights on the current market volatility, stating, 'While investors are no stranger to sharp downside volatility – both 2020 and 2022 yielded bear markets – the speed of the decline since Thursday morning is unique and particularly unsettling.' He advised investors to resist the impulse to react hastily by selling off their stocks in this turbulent environment.

In addition to the plummet in stock values, commodities such as oil and cryptocurrencies have also seen declines. Oil prices dropped sharply amid fears that a recession would adversely affect demand, compounded by the fact that the Organization of the Petroleum Exporting Countries (OPEC) and its allies are planning to increase production in the upcoming month. Meanwhile, Bitcoin fell below the crucial $80,000 threshold overnight, reflecting the broader market instability.

Medora Lee, a financial reporter at USA TODAY, provided further context on the situation. For more financial insights and tips, you can reach her at mjlee@usatoday.com or subscribe to the free Daily Money newsletter for business updates every Monday through Friday morning.

This article was originally published by USA TODAY: US stock futures plunge amid Trump trade war fears.