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U.S. equity futures plunged lower in late trading Sunday, setting up the S&P 500 to open in bear market territory, as global markets continue their negative reaction to President Donald Trump's tariff regime and brace for a potential in the world's biggest economy.
Stocks suffered one of the biggest two-day losses in market history by the close of trading Friday, with the S&P 500 falling 322 points, or 5.97%, to peg the broadest measure of U.S. shares at the lowest since May of last year.
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The Nasdaq Composite Index, meanwhile, closed in bear market territory, defined as a 20% decline from its last record peak, having falling 982 points on Friday and 22.7% since December 16.
The Dow Jones Industrial Average, meanwhile, slumped 2,231 points, dragging the 30-stock average into a so-called technical correction, defined a 20% decline from a recent all-time high.
Collectively, U.S. stocks have lost more than $5.54 trillion in value since President Trump's "Liberation Day" tariff event at the White House.
"Last week's brutal selling pressure is set to continue on Monday, as the market is telling us that investors still lack clarity on the implications of tariffs, tariff retaliation and are worried that economic growth is likely to slow to a complete stall or recession," said James Demmert, chief investment officer at New York-based Main Street Research.
"We are encouraged by reports that some 50 countries have reached out to the U.S. to initiate trade negotiations," he added. "Any negotiation will be supportive of the economy and markets. In its current state tariffs are likely to slow GDP by 0.5% so any reduction will be constructive. In the absence of tariff reduction, we believe the Fed will cut rates to offset the slowing effect of tariffs. They may do so unexpectedly if markets continue their decline."
Related: Don't expect the Fed to rescue stocks from tariff gambit
Early indications suggest that selling is likely to continue, with futures contracts tied to the S&P 500 indicating an opening bell decline of 200-plus points, or 4.67%, with the Dow primed for a plunge of 1,300 points.
The tech-focused Nasdaq, meanwhile, is called more than 900 points lower, or 5.45%, with more big downside moves from mega cap names such as Nvidia (NVDA) , Apple (AAPL) and Tesla (TSLA) expected.
In overseas markets, Japan's Nikkei 225 Index was marked 2.75% lower in early Tokyo trading, while the U.S. dollar index, which tracks the greenback against a basket of six global currencies, slumped 0.53% to 102.479.