#CryptoTariffDrop U.S. stock futures fell sharply on Wednesday as China announced sweeping retaliatory tariffs on American goods. Dow futures sank 790 points, or 2.1%, while S&P 500 futures dropped 1.8%. Nasdaq-100 futures also declined, down 1.5%.

As of Apr. 8, the S&P 500 has dropped below the 5,000 mark for the first time in nearly a year and is now down 18.9% from its February high, close to the technical threshold of a bear market.

According to LSEG, S&P 500 companies have lost $5.8 trillion in market value over the past four days, marking the steepest four-day decline since the index was created. Japan’s Nikkei and other Asian markets have also started showing similar downward trends.

Crypto markets have not been immune. The global crypto market cap has fallen to $2.45 trillion, down from $3.66 trillion in mid-January, just before Trump’s inauguration.

The Crypto Fear and Greed Index, which tracks market sentiment based on price volatility, trading volume, and social trends, has fallen to 18. This level, categorized as “extreme fear,” hasn’t been seen since June 2022.

Given these conditions, there’s growing speculation about whether the Federal Reserve might consider a rate cut in the near term, and if so, what that could mean for digital assets.