U.S. equity markets are taking a significant hit following escalating trade-war rhetoric from Washington. The S&P 500 dropped 1.54%, the Dow Jones Industrial Average fell 1.33%, and the Nasdaq Composite slid 1.77% as geopolitical tensions weigh on investor sentiment. These macroeconomic headwinds often create spillover effects in crypto markets, as risk-off sentiment typically drives capital away from digital assets. Traders monitoring broader economic indicators should watch how this trade policy developments shape both traditional and alternative asset classes in the coming sessions.