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Dow futures sink 1,500 points as stock market rout continues on Trump trade war

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  • US stocks are poised to continue their scorching free fall as futures signaled more fear over President Donald Trump’s tariffs. Administration officials on Sunday signaled that they won’t back down from their aggressive stance. Meanwhile, an inflation report is due later this week as well as bank earnings.

Wall Street remained in fear mode over President Donald Trump’s tariffs on Sunday evening as futures pointed to more steep losses.

Dow Jones Industrial Average futures tumbled 1,468 points, or 3.8%, while S&P 500 futures sank 4.3% and Nasdaq futures dived 4.9%. That follows a devastating week that saw the worst selloff since the early days of the COVID-19 pandemic.

The 10-year Treasury yield was flat at 4%, and US crude oil prices fell 3.3% to $59.95 a barrel.

On Wednesday, Trump announced a minimum tariff rate of 10% and higher rates for 57 economies like China (34%), the European Union (20%), and Japan (24%). Fitch Ratings estimated that the effective tariff rate could hit 25% on average — the highest in more than 115 years.

Former Treasury Secretary Larry Summers aired caution in an X post on Sunday, saying there’s a very good chance of more market turbulence similar to what was seen on Thursday and Friday.

Those sessions represented the fourth largest two-day drop in the last 85 years, Summer said. The selloff wiped out about $6 trillion in market cap.

“A drop of this magnitude signals that there’s likely to be trouble ahead, and people ought to be very cautious,” Summers wrote. 

Meanwhile, Trump administration on Sunday officials sought to ease concerns about financial markets and the economy.

National Economic Council Director Kevin Hassett told ABC News that more than 50 countries have reached out to the White House to negotiate on tariffs.

But for now, Commerce Secretary Howard Lutnick said the tariffs will remain and won’t be postponed. While the minimum 10% tariff took effect early Saturday, the individualized levies will go into place Wednesday.

“They are definitely going to stay in place for days and weeks,” he told CBS.

In response to Trump’s sweeping tariffs, JPMorgan now sees a recession, with GDP shrinking 0.3% this year. But Treasury Secretary Scott Bessent said Sunday there doesn’t have to be a recession and called the stock selloff a short-term reaction.

“One thing that I can tell you, as the Treasury secretary, what I’ve been very impressed with is the market infrastructure, that we had record volume on Friday. And everything is working very smoothly so the American people, they can take great comfort in that,” he told NBC.

Bessent also gave no indication that Trump will back off from this aggressive tariffs.

On Friday, Federal Reserve Chairman Jerome Powell warned that sweeping tariffs could push inflation higher, cooling anticipation for an imminent interest rate cut. 

Markets will get an inflation update on Thursday, when the consumer price index report for March will come out, giving insight into where inflation was headed before the latest tariffs hit. 

Additionally, earnings season for first-quarter results will kick off this week as JPMorgan, Wells Fargo, and BlackRock report on Friday.

Commentary from top executives about the tariffs and their forecasts for how they will affect their companies will be under special scrutiny.

This story was originally featured on Fortune.com



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Tax season nightmare: The IRS is so understaffed from DOGE they ‘don’t have time to look at certain cases’

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Taxpayers calling the IRS for help processing their taxes this filing season may find it harder than normal to get someone on the phone, experts say, a problem that is only expected to get worse next year with staffing cuts that could slash the workforce considerably.

For this year, data of tax return processing times shows numbers largely in line with those from last year. IRS employees involved in the 2025 tax season were not allowed to accept a buyout offer from the Trump administration until after the taxpayer filing deadline of April 15, though thousands of probationary workers were laid off earlier this year.

Legal experts in tax compliance say the long wait times are going to increase as more buyouts and layoffs take effect.

Eric Santos, the executive director of the Georgia Tax Clinic, which provides free tax law services to low-income taxpayers, says wait times for the IRS’ phone line are markedly longer than usual and IRS staff are overwhelmed with the increase in work.

The IRS staff “basically tell us they don’t have time to look at certain cases,” Santos said. “The work is getting spread across fewer and fewer people.”

The reduction in workers — which may end up being nearly half the entire IRS workforce — is part of the Trump administration’s efforts to shrink the size of the federal workforce through billionaire Elon Musk’s Department of Government Efficiency by closing agencies, laying off nearly all probationary employees who have not yet gained civil service protection and offering buyouts to almost all federal employees through a “deferred resignation program.”

Earlier this month, the IRS began layoffs that could end up cutting as many as 20,000 staffers — up to 25% of the total workforce. The roughly 7,000 probationary IRS workers who were laid off beginning in February were recently ordered to be reinstated by a federal judge, though it’s unclear whether those workers have been called back into work.

Comparing figures through the first week of April from 2024 and 2025, 101.4 million returns were processed this year compared to 101.8 million tax returns last year. Refunds are up, with 67.7 million issued this year compared with 66.7 million in 2024.

But Santos and others worry that the 2026 filing season could be negatively impacted by the loss of thousands of additional tax collection workers who are expected to exit the agency through planned layoffs and buyouts.

“I don’t see how they’re going to keep up with tax filing season next year,” Santos said. “I think its a fair question to ask now.”

A Treasury spokesperson who was not authorized to speak publicly and spoke to The Associated Press on the condition of anonymity said in a statement that IRS staffing reductions were part of other improvements the agency is taking to be more efficient and improve service.

Sakinah Tillman, director of the University of the District of Columbia Tax Clinic, has not seen a delay in processing refunds this year but has seen delays in reaching the IRS by phone.

She worries that the phone delays could hurt clients going through collections who are trying to settle their debts.

“What happens when clients try to become compliant?” she asked. “Or when people who are willing and able to pay but they just can’t get someone on the phone?

Former IRS Commissioner John Koskinen told the AP that even in a normal year the IRS’ responsiveness slows the further into tax season it gets.

“Next year, if they cut 10,000 or 20,000 employees, they’re headed back to really bad taxpayer service on the phone,” he said. “And the taxpayer priority line will become an oxymoron.”

This story was originally featured on Fortune.com



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The latest scientific breakthrough in how probiotics impact mental health

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Apple buyers won’t stay if tariffs hit, top analyst warns 

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FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.



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