Stock Market Crashes as Trump’s Tariff Shock Sparks Sell-Off

U.S. stocks took a significant hit on Thursday after President Donald Trump revealed sweeping tariffs, starting at 10% for some countries.

The move sparked fears of a global trade war, exacerbating existing concerns about the U.S. economy and triggering a massive sell-off.

The S&P 500 fell 3%, marking its worst day since September 2022 (roughly $2 trillion were wiped out today), while the Dow Jones Industrial Average dropped 1,200 points, or 3%. The Nasdaq Composite also took a heavy blow, falling 4%. The sharp decline sent the S&P 500 back into correction territory, wiping out nearly $2 trillion in value.

Shares of multinational companies bore the brunt of the decline. Nike and Apple fell by 11% and 8%, respectively, while retailers dependent on imports faced severe losses. Five Below plunged 27%, Dollar Tree fell 9%, and Gap dropped 19%. Tech stocks were also hit hard, with Nvidia down 6% and Tesla slipping 4%.

The tariffs, set to take effect on April 5, include a baseline rate of 10% for all countries, but nations with higher tariffs on U.S. products will face even steeper charges. China, for instance, now faces an effective tariff rate of 54%. Trump explained that the tariffs would equal roughly half of what other countries charge the U.S., taking into account various barriers and what he described as “cheating.”

Investors, caught off guard by the severity of the tariffs, moved to safer assets, pushing the 10-year Treasury yield down to 4.057%. Global currencies like the yen and euro strengthened against the dollar. Mary Ann Bartels, chief investment strategist at Sanctuary Wealth, noted that the tariffs were harsher than expected, leading to a sharp market reaction.

The sell-off also hit big tech stocks particularly hard. A group of major tech companies, including NVIDIA, Apple, Alphabet, Microsoft, Meta, Amazon, and Tesla, collectively lost $950 billion, erasing gains made over the past year.

The S&P 500 had shown signs of recovery earlier in the week amid hopes for a milder tariff policy. However, the unexpected severity of the new measures has renewed concerns about an economic slowdown, leaving investors wary of what lies ahead.

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