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Futures down: S&P 500 2.35%, Nasdaq 100 2.72%, Dow 2.09%

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Howmet Aerospace ( HWM ) falls on report it may halt orders if hit

by

tariffs

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S&P 500, Dow futures down 20% from record highs

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Goldman Sachs raises odds of US recession

(Updates comment, prices)

By Pranav Kashyap and Purvi Agarwal

April 7 (Reuters) - Wall Street futures fell on Monday

and the benchmark S&P 500 was set to confirm a bear market as

investors piled into government bonds on worries over the

ramifications of U.S. President Donald Trump's sweeping tariff

plans.

The 10-year U.S. Treasury yields fell to 3.986%,

with investors pricing in a chance of a fifth interest-rate cut

from the Federal Reserve this year.

Futures, however, cut losses sharply from earlier in the

session. S&P 500 E-minis were now down 120 points, or

2.35%, Nasdaq 100 E-minis were down 476.5 points, or

2.72%, and Dow E-minis were down 805 points, or 2.09%.

"What we're seeing is more of a technical bounce after a

very steep selloff, but it's not necessarily the end of the

selloff," said Fiona Cincotta, senior market analyst at City

Index.

"For that to happen, we would need to see fundamental

changes such as Trump walking back some trade tariffs or some

sense that the global economy will perform okay regardless, or

central banks stepping in to support economies."

S&P 500 futures are down more than 20% from their peak,

suggesting the benchmark index is heading toward bear

market territory. If the index ends down 20% from its all-time

closing highs, it would confirm the index has been in a bear

market since February.

Futures linked to the Dow also fell 20% from their record

high.

Trump announced hefty tariffs against U.S. trading partners

last week, sparking retaliation from China and fueling concerns

that the trade war will impede economic growth and stoke

inflationary pressures.

In the two sessions after Trump's tariff decision, the S&P

500 has tumbled 10.5%, erasing nearly $5 trillion in market

value, marking its most significant two-day loss since March

2020.

Trump told reporters late on Sunday that investors must

endure the consequences and that he would refrain from

negotiating with China until the U.S. trade deficit is

addressed.

Futures tracking the U.S. small-cap Russell 2000 index

tumbled 3%, underscoring concerns about the health of

the domestic economy.

The CBOE Volatility Index, seen as Wall Street's fear

gauge, was up 3.14 points to 48.45.

Stocks fell across the board in premarket trade, with

megacaps continuing to bear the brunt. Apple ( AAPL ) fell 3.6%,

Nvidia ( NVDA ) lost 5.1%, while Amazon.com ( AMZN ) shed 2.9%.

Howmet Aerospace ( HWM ) dropped 5.2%, after a report said

the aircraft parts supplier may halt some shipments if they are

impacted by Trump's tariffs.

The sharp declines in the past two sessions pushed the

tech-heavy Nasdaq into bear market, while the Dow Jones

Industrial Average slumped more than 10% from its

record-closing high.

The fear of a tariff-led recession caused markets to bring

into play the chances of an interest-rate cut in May, with

traders seeing a 51% possibility, according to data compiled by

LSEG.

Goldman Sachs raised the odds of a U.S. recession to 45%

from 35%, the second time it has increased its forecast in a

week.

Several speeches by Fed officials and a series of economic

indicators, including consumer price data, are slated throughout

the week, with markets keenly observing any signals of

recessionary fears.