Global financial markets opened the week under strong risk-off sentiment. Major U.S. stock futures fell sharply on Monday (7th), reflecting the ongoing impact of Washington’s tariff strategy. The stance reaffirmed on Sunday by President Donald Trump has intensified fears of a synchronized recession among the world’s largest economies.
S&P 500 futures were down 1.77%, Nasdaq 100 futures dropped 2.09%, and Dow Jones futures fell 1.88% in early trading. The decline follows historic losses from the previous week, when the Dow Jones shed over 1,500 points in two days and the Nasdaq Composite officially entered bear market territory, falling 22% from its record high.
The protectionist escalation is particularly affecting companies with high international exposure. One of the most emblematic cases is Apple, which lost approximately $450 billion in market value following the tariff announcements. Analysts at Wedbush lowered their price target for the stock, citing significant impacts on both production and global demand due to the company’s reliance on the Asian supply chain — particularly in China, where an estimated 90% of iPhones are manufactured.
The European banking sector also took a major hit. Shares of institutions such as Commerzbank, Deutsche Bank, Santander, Société Générale, and HSBC posted steep losses, reflecting deteriorating growth expectations and weaker credit demand. The pressure has been heightened by concerns that consumer confidence may decline, potentially dampening economic activity throughout the eurozone.
In the energy markets, oil prices hit fresh four-year lows, with Brent and WTI crude both losing more than 10% last week. The decline reflects falling global demand due to rising trade tensions and the possibility of increased output by OPEC+ nations, led by Russia and Saudi Arabia. Goldman Sachs, in fact, cut its 2025 average Brent forecast to $69 per barrel, with WTI expected to average $66 for the year, according to the bank.
The European Union’s response to the latest U.S. tariffs is expected later this week. The bloc is considering reciprocal tariffs on approximately $28 billion worth of U.S. goods, which could further worsen the region’s economic outlook. European Central Bank officials estimate that a broad 25% tariff on European exports could shave up to 0.5 percentage points off eurozone growth within a year.
Outlook for the Days Ahead
The coming days are expected to bring continued volatility to global markets. Focus remains on the EU’s formal response to U.S. measures, which could trigger a new round of global trade tensions. Investors are also closely watching developments in China, which has already begun implementing retaliatory tariffs and may further assert its position in multilateral forums.
Analysts are carefully monitoring deteriorating confidence indicators, especially in the industrial and services sectors. The drop in banking stocks and energy commodities suggests investors are pricing in a deeper economic slowdown. Key economic activity data throughout the week may offer further insight into the resilience of the world’s largest economies.
Meanwhile, global growth forecasts are starting to be revised downward by major financial institutions, amid a backdrop of political uncertainty, weakening trade activity, and growing strain on global supply chains.
If the tariff escalation persists, its effects are expected to be felt most acutely in sectors such as technology, automotive, and energy — all of which heavily depend on stable trade relations and reliable logistics. The environment remains fragile, and further diplomatic developments or economic policy decisions could redirect market trends in the days ahead.
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