Trump’s tariff plans remained at the forefront of the sell-off, with the fresh round of market fears triggered by China’s surprise tit-for-tat 34% tariff on US goods to end last week, which Yeap calls a clear signal of escalation rather than compromise.
The bloodbath in Wall Street looks set to extend into the new week, says Yeap Jun Rong, market strategist at trading solutions provider IG. The sharp market drawdown over the past week is “seemingly looking for capitulation” as market volatility displayed by the VIX hits extreme levels — its highest since August 2024.
US equity futures point to a follow-through of the bearish momentum, with the S&P 500 looking set to join the Nasdaq in bear market territory in Monday’s futures trading, while the DJIA futures eyes another 1,000-point drop or more, says Yeap in an April 7 note.
