Market in Turmoil Following Tariff Announcement

The stock market experienced a significant downturn after U.S. President Donald Trump announced reciprocal tariffs, erasing $3.1 trillion in market capitalization. The announcement sparked fears of stagflation, with Wall Street institutions revising economic forecasts to reflect the potential impact.

Historic Drops Across Major Indices

The Dow Jones Industrial Average fell by 1,679.39 points (-3.98%), the S&P 500 dropped 274.37 points (-4.84%), and the Nasdaq Composite Index plunged 1,050.44 points (-5.97%). These declines were noted as the largest since the early days of the pandemic.

Tech and Retail Sectors Hit Hard

Companies like Apple, Amazon, and Meta saw significant drops, with concerns over rising sales prices and supply chain disruptions. Retailers importing low-priced Chinese goods, such as Five Below and Dollar Tree, also faced steep declines.

Global Economic Concerns

The tariff announcement led to a buying spree in U.S. Treasury bonds and a drop in the dollar index, as investors sought safer assets. Analysts predict potential negative GDP growth and rising inflation rates, signaling a challenging economic outlook.