U.S. stock futures tumbled Friday after President Donald Trump made a surprise announcement to impose tariffs on imports from Mexico, and amid reports China may be readying fresh retaliatory moves against the U.S.
How are major benchmarks faring?
Dow Jones Industrial Average futures YMM19, -0.96% fell 271 points, or 1%, to 24,922, while S&P 500 futures ESM19, -1.02% dropped 29.15 points, or 1%, to 2,762 and Nasdaq-100 futures NQM19, -1.31% futures slid 87.25 points, or 1.2%, to 7,168.
On Thursday, the Dow Jones Industrial Average DJIA, +0.17% rose 43.47 points, or 0.2%, to close at 25,169.88. The S&P 500 index SPX, +0.21% gained 5.84 points, or 0.2%, to 2,788.86 and the Nasdaq Composite Index COMP, +0.27% climbed 20.41 points, or 0.3%, to 7,567.72.
What’s driving the market?
Late Thursday, just as Asian markets began trading, Trump announced in a tweet that the U.S. would impose a 5% tariff on all goods from Mexico until that country stops the flow of illegal immigrants into the country. He said the tariffs will rise to 10% on July 1 if the crisis persists, and by another 5% for every successive month, up to 25% by Oct. 1.
“Tariffs will permanently remain at the 25 percent level unless and until Mexico substantially stops the illegal inflow of aliens coming through its territory,” Trump said. Earlier Thursday, the White House administration triggered the process for submitting a bill to Congress that would implement the new the United States-Mexico-Canada Agreement, the successor to the North American Free Trade Agreement.
Stock futures fell on the Mexico news, then dropped lower during early European trading after a tweet from Hu Xijin, the widely followed editor of the Global Times, a Chinese tabloid believed to have a pro-government slant. “Based on what I know, China will take major retaliative