U.S. stock index futures were sharply lower Friday morning, as investors feared President Donald Trump’s threat of tariffs on all Mexico imports exacerbated the risk of recession.
At around 03:00 a.m. ET, Dow futures slipped 219 points, indicating a negative open of roughly 200 points. Futures on the S&P and Nasdaq were both seen slightly lower.
Market participants moved aggressively to price in deeper rate cuts by the Federal Reserve over the coming months, while the closely-watched 10-year Treasury yield dropped to lows not seen since 2017.
The U.S. benchmark was yielding 2.1783% Friday morning. It stood above 2.5% at the beginning of the month.
On Thursday evening, Trump announced the U.S. would impose a 5% tariff on all Mexican imports from June 10 until illegal immigration across the southern border was stopped.