Global Markets Plunge as Trump Tariffs Wipe Out $5 Trillion from S&P 500

In a dramatic escalation of trade tensions, global stock markets suffered a severe downturn on Friday, with the S&P 500 losing a staggering $5 trillion in value over two days following U.S. President Donald Trump’s announcement of sweeping tariffs on Wednesday. This record-breaking decline, the largest two-day drop since the $3.3 trillion loss during the March 2020 pandemic crash, has heightened fears of a global recession, according to data from LSEG compiled by Reuters.

Markets Plunge

The tariffs, including a 10% levy on most U.S. imports and steeper duties on dozens of countries, represent the most significant trade barriers in over a century. China retaliated on Friday with a 34% tariff on American goods, intensifying concerns of a full-blown trade war. Investors fled to the safety of government bonds, driving the Cboe Volatility Index to 45.31—its highest close since April 2020.

The tech-heavy Nasdaq entered bear market territory, plummeting 5.82% to 15,587.79, down 22.7% from its December 16 peak. The Dow Jones Industrial Average dropped 5.50% to 38,314.86, confirming a correction, while the S&P 500 fell 5.97% to 5,074.08. In Europe, the STOXX 600 index shed 5.1%, its worst day since 2020, entering correction territory with a nearly 12% decline from its March high.

Apple hit hard

Companies exposed to China, such as Apple (down 7.3%) and chipmakers (down 7.6%), were hit hard, while bank and energy stocks also slumped amid recession fears. Oil prices cratered, with Brent crude falling 6.5% to $65.58 and U.S. crude dropping 7.4% to $61.99, the lowest in over three years. Despite positive U.S. jobs data for March, the market mood remained grim, with experts like Rick Meckler of Cherry Lane Investments warning that the tariff fallout could deepen economic risks beyond mere negotiation tactics.

Business News

Will China turn BRICS into a tool of trade war against the US?

BIZ NEWS CODE

Read More News on Business News Malaysia