Wall Street has closed after a second consecutive day of steep losses, driven by escalating tensions over Donald Trump's tariffs. China’s retaliatory tariffs on U.S. goods have heightened fears of a global trade war, stoking concerns of an impending recession.
All three major U.S. stock indexes extended their declines, each falling more than 5%, marking the worst week for U.S. markets in five years. Here’s a breakdown of the initial damage:
- The Dow Jones Industrial Average plunged 5.53%.
- The S&P 500 fell 6%.
- The Nasdaq Composite dropped 5.76% and is now 22% below its December record high, signaling a bear market.
The sell-off began yesterday as major companies like Nike, Apple, and Amazon saw billions wiped from their valuations following Trump’s tariff announcement. Today, tech stocks bore the brunt of the downturn. AI leader Nvidia tumbled 7%, while Tesla slid 10%. Both companies, heavily reliant on the Chinese market, were among the hardest hit by the retaliatory measures.
Shockwaves from the market turmoil rippled beyond tariff-sensitive industries, affecting typically resilient sectors like healthcare and utilities.
Analysts estimate that the global stock market has already lost an astonishing USD4.9 trillion in value since Wednesday evening, underscoring the widespread impact of the escalating trade conflict.
