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Stocks took a nosedive on Thursday, wiping out trillions in market value, as President Donald Trump’s sweeping new tariffs shook investor confidence and triggered a global sell-off.
The Dow Jones Industrial Average plummeted 1,679 points, or 4%, closing at 40,546. The S&P 500 suffered its worst single-day loss since the COVID-19 crisis, falling 274 points or 4.8%, while the Nasdaq cratered nearly 6% — shedding over 1,050 points in one session.
The dramatic downturn follows the Trump administration’s announcement of a 10% baseline tariff on all imports and steep new levies on trading partners including China, Taiwan, and Vietnam. Tariffs on Chinese goods are now as high as 54%, escalating fears of a prolonged trade war and renewed inflationary pressure.
“Investor psychology has been destroyed, and dip buyers are nowhere to be seen,” said Adam Crisafulli, founder of Vital Knowledge, in a market note. “All the efforts to spin recent events positively are increasingly falling flat.”
Tech stocks led the rout, with Apple losing nearly 10% amid concerns about its Chinese manufacturing base. Even artificial intelligence giant Nvidia saw shares fall 8%, while Best Buy and Nike each dropped 16%. United Airlinesshares tumbled 16%, highlighting broad economic concerns.
Experts warn the tariffs could raise costs, slow consumer spending, and hurt corporate profits. Solita Marcelli, Chief Investment Officer for the Americas at UBS Global Wealth Management, said investors now face “likely downgrades to economic and earnings forecasts” as well as “the risk of a tit-for-tat escalation.”
Global markets echoed the anxiety. Germany’s DAX lost 3%, France’s CAC 40 dropped 3%, and Japan’s Nikkei slid nearly 3% after opening sharply lower.
Despite the market panic, the White House struck a confident tone. “To anyone on Wall Street this morning, I would say trust in President Trump,” Press Secretary Karoline Leavitt told CNN.
Since returning to office, Trump has imposed over $3 trillion in tariffs, more than eight times the total during his first term. Analysts say markets may still be underreacting, given the scale of disruption to global trade.
“We’ve never seen anything like this — it’s a wholesale transformation of how the U.S. engages in global commerce,” said Sean Sun, a portfolio manager at Thornburg Investment Management.
Still, U.S. job growth remains strong, and the unemployment rate holds near 4%. Some economists suggest the turmoil could prompt the Federal Reserve to consider interest rate cuts later this year to prevent an economic slowdown.
But for now, Wall Street is on edge, with the Trump tariffs impact leaving a trail of uncertainty across industries and borders.
