Closing Recap 

U.S. stock futures point sharply lower, extending Friday’s deep losses as pervasive fears over impending tariffs and potential recession/stagflation grip markets; global equities are tumbling, while safe-haven assets like gold and Treasuries are seeing strong bids. 

Key Takeaways 

• Deep Red Futures: Stock futures indicate a significantly negative open, continuing the downward momentum from last week. 
• Tariff Dread Peaks: Extreme uncertainty surrounds President Trump’s expected “Liberation Day” tariff announcements tomorrow (April 2nd), fueling risk aversion. 
• Recession/Stagflation Fears Mount: Concerns are growing that tariffs will stifle consumer spending, exacerbate inflation (as hinted by Friday’s data), and push the economy towards a downturn. 
• Broad-Based Weakness: While Technology and Consumer Discretionary have led the recent declines, the sell-off is widespread. 
• Global Market Rout: Asian and European stock markets are experiencing sharp sell-offs, reflecting global contagion of tariff fears. 
• Goldman Cuts Target Again: Goldman Sachs strategist David Kostin further reduced his S&P 500 year-end target, citing higher recession risk and tariff impacts, adding to the bleak sentiment. 
• Safe Havens Rally: Gold futures are surging to new highs, and Treasury yields are falling (prices rising) as investors seek safety.

Market Overview 

The start of the new trading week and quarter offers no respite for battered investor sentiment, with U.S. stock futures indicating another session of significant losses. This follows a brutal end to the previous week, where major indices tumbled on Friday, cementing weekly losses driven by escalating fears about the economic impact of tariffs. The market is intensely focused on President Donald Trump’s anticipated announcement regarding reciprocal tariffs tomorrow, April 2nd, a date he has termed “Liberation Day.” Specific measures already promised include tariffs on imports from countries levying duties on U.S. goods (starting Wednesday) and 25% tariffs on foreign-made cars and auto parts (starting Thursday). 

Index (Futures)	Up/Down	% Change	Last
Dow	-236	-0.0056	41615
S&P 500	-49.25	-0.0088	5573
Nasdaq	-239.5	-0.0123	19217

This profound uncertainty is paralyzing markets, reflected in the S&P 500 and Nasdaq entering the week having declined in seven of the last nine weeks. Investors hate uncertainty, and the lack of clarity on the scope, scale, and potential retaliatory actions related to these tariffs is creating a peak fear environment. Worries that these measures will increase inflation (as suggested by Friday’s core PCE data), dampen already softening consumer sentiment (also seen Friday), and ultimately tip the economy into recession or stagflation are now widespread. 

The negative sentiment is global. Asian markets endured sharp losses overnight, with Japan’s Nikkei plunging 4%, and significant drops seen in China, Hong Kong, South Korea, and Taiwan. European markets followed suit, with major indices like the German DAX and UK FTSE 100 down sharply. Reinforcing the bearish outlook, Goldman Sachs strategist David Kostin cut his S&P 500 target for the second time this month, now expecting a year-end level around 5,700, implying minimal gains from here due to higher recession risks and the negative impact of tariffs on corporate earnings.

Economic Data

The domestic economic calendar is very light today, placing even greater emphasis on market sentiment and anticipation of tomorrow’s tariff news. Today’s Calendar: 

• 12:00 PM ET: Monthly Grain report for March 
• China Caixin Manufacturing PMI for March (Released earlier) 

Commodities, Currencies, and Treasuries 

Safe-haven assets are in strong demand amid the sharp risk-off move. Gold futures are surging significantly, breaking well above $3,100 per ounce as investors flee equity market turmoil and tariff uncertainty. U.S. Treasury yields are falling notably (prices rising), with the 10-year yield dropping back below 4.20%, reflecting a classic flight to quality. Crude oil prices are bucking the trend slightly, edging modestly higher, but conviction appears limited given the broader economic growth concerns. In currency markets, the Japanese yen strengthened earlier against the dollar (briefly below 149) amid the Asian market slump, acting as another safe-haven destination, though the dollar showed slight resilience against the euro.

Asset	Up/Down	Last
WTI Crude	0.22	69.58
Brent	0.46	74.09
Gold	39.4	3153.7
EUR/USD	-0.001	1.0817
USD/JPY	-0.54	149.27
10-Year Note	-0.059	0.04196

Looking Ahead 

The market is almost entirely focused on President Trump’s expected tariff announcements tomorrow, April 2nd. The specifics (or lack thereof) will likely dictate near-term market direction. With a light economic calendar today, sentiment, geopolitical headlines (like the Le Pen conviction in France), and analyst revisions (like Goldman’s) will drive intraday moves. The extreme fear and downward momentum suggest sellers remain firmly in control heading into the pivotal tariff deadline.