Wall Street's Worst Day Since 2020

Wall Street plunges in its worst sell-off since 2020 as Trump's sweeping tariffs spark fears of a global trade war and economic recession.

President Donald Trump's unprecedented trade policies will probably cause the US and global economies to fall into a recession this year, JPMorgan analysts said. Charly Triballeau/AFP/Getty Images (Source: CNN)

Wall Street witnessed a dramatic sell-off on Thursday, marking its steepest decline since the COVID-19 pandemic in 2020. The S&P 500 fell by nearly 5%, erasing $2 trillion in market value, while the Dow Jones Industrial Average dropped 1,679 points (4%). The Nasdaq Composite, heavily weighted toward technology stocks, plunged by 6%, with major companies like Apple and Amazon suffering significant losses 1 5.

Trump's Tariff Shock

The sell-off was triggered by President Donald Trump's announcement of sweeping tariffs on imports, including a baseline 10% duty on all nations and higher rates for specific countries. China retaliated with a 34% tariff on U.S. goods, escalating fears of a global trade war. Analysts warned that these measures could lead to inflation and recession, further unsettling investors 2 9.

Impact on Key Sectors

Technology stocks were hit hardest, with Apple losing over 9% due to supply chain concerns. Retail companies like Nike and Ralph Lauren also faced steep declines as tariffs disrupted manufacturing and sales. The energy sector suffered as crude oil prices fell nearly 7%, reflecting broader economic slowdown fears 1 4.

Global Markets React

International markets mirrored Wall Street's turmoil, with European and Asian indices experiencing sharp declines. Gold prices surged as investors sought safe-haven assets amid the uncertainty. Economists cautioned that the tariffs could impose a $660 billion tax burden annually on Americans, exacerbating inflation challenges 8 9.

AIgnite Opinion

The recent market turmoil highlights the fragility of global economic systems in the face of protectionist policies. While tariffs aim to strengthen domestic industries, their ripple effects—ranging from supply chain disruptions to inflation—can outweigh potential benefits. Collaborative trade negotiations may offer a more sustainable path forward than escalating conflicts.

Key Takeaways

Wall Street experienced its worst day since 2020, with major indices plunging.
President Trump's tariffs sparked fears of inflation and recession.
Technology, retail, and energy sectors faced significant losses.
Global markets reacted negatively, with gold prices rising as a safe haven.
Economists warn of long-term economic consequences if tariffs persist.