Trade Impact on Markets - President Trump's announcement of a universal 10% tariff on nearly all imported goods on April 2, 2025, led to a "global market meltdown," with S&P 500 futures dropping 3.9%, Nasdaq-100 futures down 4.7%, and Dow Jones Industrial Average futures falling 2.7% in after-hours trading [3] - Over the following two days, the Dow Jones index lost over 4,000 points, a 9.48% decline, while the S&P 500 and Nasdaq fell 10% and 11% respectively, erasing over $6.6 trillion in market value [4] - Specific companies like Apple saw immediate stock declines, with shares falling 6% after the tariff announcement and an additional 2.7% after threats of a 25% tariff on iPhones not manufactured in the U.S. [5] Sector-Specific Reactions - The pharmaceutical industry faced significant pressure, with potential tariffs on imports reaching up to 200%, leading to a 19.1% decline in the Y&P Generic Pharma index in the first half of 2025 [6] - The semiconductor sector was also affected, with Texas Instruments' stock down nearly 10% due to ongoing tariff concerns despite positive earnings reports [7] - Copper futures surged to a record high following a 50% tariff announcement, with domestic miner Freeport-McMoRan rallying over 2.5% [8] Federal Reserve Concerns - Trump's attempts to influence the Federal Reserve, including the nomination of Stephen Miran and challenges to Fed independence, raised market jitters, leading to declines in stock futures [10] - Despite initial market anxiety, expectations of Fed rate cuts due to weaker economic data led to new record highs for the S&P 500, Dow, and Nasdaq 100 shortly after [11] Market Volatility - The "Trump effect" illustrates a pattern of significant market volatility driven by trade policy announcements, capable of erasing trillions in market value quickly [12] - The market's selective response to policy announcements indicates a focus on trade-related issues over other domestic policies, such as crime crackdowns [2][12]