Stocks plunge as tariff fears spark rush to safe havens

Stocks tumbled as investors fled to gold and Treasuries ahead of President Trump’s looming global trade tariffs.

Europe’s Stoxx 600 fell 1.1%, led by declines in mining, banking, and auto stocks, while S&P 500 futures dropped 0.7%. Gold hit a record high, and Treasury yields slid. Asian markets also slumped, with Tokyo hitting a six-month low.

Trump’s broad tariff plan, set to begin April 2, has investors reducing stock holdings in favor of safer assets, anticipating potential Fed and ECB rate cuts. Goldman Sachs now expects three cuts from both banks.

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The uncertainty has wiped $5 trillion off the S&P 500 since its February peak, with US consumer sentiment plunging and inflation fears rising. Bloomberg Economics warns tariffs could cut US GDP by 4% over the next few years.

Gold surged 1% to a record $3,115.97, while the yen strengthened. Brent crude, initially lifted by Trump’s tariff threats on Russian oil, later lost ground amid growth concerns.