Market Plummets as Trade War Escalates

In a dramatic turn of events, the United States stock market experienced a severe downturn on Friday, with the Dow Jones Industrial Average plunging more than 1,900 points. The sharp decline was triggered by escalating trade tensions following President Donald Trump's imposition of tariffs on April 2, which was met with a swift and aggressive retaliation from China.

Details of the Market Crash

By 1:18 pm ET, the Dow had fallen by 4.63%, or 1,921 points, while the Nasdaq 100 and S&P 500 were not spared, tumbling by 5.36% and 5.21%, respectively. The euro also felt the impact, dropping 1.11% against the dollar to 1.09300 by 1:26 pm ET.

Underlying Causes

The market's reaction was a direct response to China's announcement of a 34% tariff on all U.S. goods, a move that has significantly heightened fears of a full-blown trade war between the world's two largest economies.