Significant sell-off in stock market due to Trump's tariffs, S&P 500 dropped 17.6%.

From Yahoo Finance: 2025-04-08 06:22:00

The stock market experienced a significant sell-off due to President Trump’s new tariffs, causing the S&P 500 to drop 17.6% from its high. Tech and small-cap stocks were hit hard, with the Nasdaq Composite and Russell 2000 already in bear market territory.

Trump’s tariffs led to a 10.5% decline in the S&P 500 in just two days, a rare occurrence in the market’s history. Similar drops were seen during Black Monday in 1987, the global financial crisis in 2008, and the COVID-19 outbreak in 2020.

Despite the rapid decline, history shows that the market tends to bounce back quickly after such events. Analysts point out that every time the S&P 500 dropped significantly, it saw a positive return over the following year, averaging a 27.2% improvement.

Investors are advised to consider buying into the market after steep declines, as quality businesses have historically recovered well. While caution is advised when picking individual stocks, the overall market has demonstrated resilience and the potential for strong returns in the long term.

The Motley Fool Stock Advisor team highlighted 10 top stocks for investors, excluding the S&P 500 Index. These recommendations have historically outperformed the market significantly, offering substantial returns to investors who follow their advice.



Read more at Yahoo Finance: The S&P 500 Just Did Something Seen Only 5 Times in 80 Years. Here’s What History Says Happens Next.