Stock futures fell on Tuesday, as investors prepared for the implementation of tariffs imposed by President Donald Trump, set to take effect shortly after midnight on Wednesday. The S&P 500 index was on the verge of entering a bear market, under pressure in recent days from the worst sell-off since the pandemic outbreak in 2020.

Futures linked to the Dow Jones Industrial Average fell by 323 points, or about 0.9%. Futures for the Nasdaq 100 dropped by 0.9%, while futures for the S&P 500 dropped by 0.9%.

Concerns about the imposition of tariffs, announced by Trump late last Wednesday, led to a sharp decline in stock markets that lasted four days. Volatility continued on Tuesday, as the S&P 500 index fell.

It rose by more than 4% at one point before ending the day with a loss of 1.6%. The Dow Jones index, consisting of 30 stocks

The Saudi stock market index rose by 3.9% at its highest point during the day, but ultimately fell by 0.8% at the end of trading. The general market index decreased by about 19% from its all-time high.

Over four days, the Dow Jones index lost more than 4,500 points, while the S&P 500 index incurred a loss of 12%. As for the Nasdaq Composite,

It fell by more than 13% during that period.

The tech giant Apple

Apple suffered significantly during that period, as the iPhone manufacturer is expected to see rising costs due to tariffs on China. Its shares fell by about 23% over the past four days, marking its worst performance since October 2000.

Investors may witness sharp fluctuations as a package of tariffs takes effect on Wednesday shortly after midnight. These tariffs include an anticipated 104% tax on Chinese imports. Customs will begin collecting new tariffs on imports from 86 countries at midnight.

Some affected countries are preparing to retaliate, with Canada reaffirming its plans on Tuesday afternoon to impose retaliatory tariffs of 25% on U.S.-made vehicles, expected to take effect just after midnight on Wednesday. This includes vehicles that do not comply with the U.S.-Mexico-Canada Agreement, as well as non-Canadian and non-Mexican vehicles that are fully assembled and compliant with the U.S.-Mexico-Canada Agreement, which are imported from the U.S. to Canada.

Andy Laperriere, an analyst at Piper Sandler, wrote on Tuesday: "Our base case is that tariffs will decrease over time from their current levels, but they will remain high - at the highest levels in our lifetime." He added: "They are likely to rise in the near term, with the possibility of some deals (perhaps small deals) also in the near term."

Aside from the tariff proposal, investors will be watching the minutes from the Federal Reserve meeting, scheduled to be released on Wednesday.

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