From Wednesday to Friday, the S&P 500 lost an astonishing $100 billion per trading hour—totaling $2 trillion in just three sessions. Then, as if on cue, S&P futures erased another $120 billion within minutes after the close. What triggered this historic volatility? The unraveling began when investors—lulled into a false sense of stability—were blindsided by President Trump’s sudden announcement of 25% auto tariffs.

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Markets had priced in a pause, believing tariff threats had peaked. Instead, the rug was pulled. The result? One of the most violent bull traps in recent memory. Confidence collapsed, producers panicked, and the U.S. posted a record $301 billion two-month trade deficit—twice the historical norm. This wasn’t just a market reaction; it was a systemic repricing of risk, policy, and geopolitical stability.