New York City, U.S. was struck by a significant downturn in the stock market after President Donald Trump unveiled his tariff plan, leading to the largest drop in U.S. equities in five years. Dow Jones Industrial Average futures saw a decline on Thursday night amidst the aftermath of the announcement, with futures tied to the blue-chip index falling 0.2%. This came after the 30-stock average suffered a substantial decline of more than 1,600 points in the previous session.
Following the worst day since 2020 for the major indexes, the Dow, S&P 500, and Nasdaq Composite experienced significant losses, with drops of approximately 4%, 4.8%, and nearly 6%, respectively. The S&P 500 dipped back into a correction territory, down over 10% from its peak in February. The Russell 2000, a key benchmark for U.S. stocks, plummeted over 6%, marking its entrance into a bear market.
Notably, megacap technology stocks bore the brunt of Thursday’s sell-off, with CNBC’s Magnificent Seven index witnessing a decline of over 6%. The tech sector suffered losses exceeding $1 trillion in market value. The Nasdaq Composite led the downward trend for stocks during the week, with a 4.5% decrease, largely driven by the tariff plan and resulting risk aversion among investors.
Global markets were also impacted by Trump’s tariff announcement, which involved a 10% baseline rate on imported goods from all countries starting from April 5. The move left investors uncertain about the possibility of trade negotiations to alleviate tariff duties. Trump’s shift towards being open to negotiations on Thursday contrasted with earlier statements by administration officials, causing further speculation among market participants.
Looking ahead, investors are awaiting the closely watched jobs report for March, expected to reveal nonfarm payrolls increasing by 140,000 jobs while the unemployment rate holds steady at 4.1%. The fluctuating market conditions and uncertainties surrounding trade deals with the U.S. continue to shape investor sentiment and market dynamics.
