S&P 500 plummets due to Trump's tariffs, sparking fears of global trade war

From Yahoo Finance: 2025-04-03 20:40:00

Global stock markets continued their decline, with S&P 500 companies losing $5 trillion since Trump’s tariffs. The Nasdaq entered a bear market, while oil prices and commodities fell. China retaliated with 34% levies on American goods, sparking fears of a global trade war. The Dow, S&P 500, and Nasdaq all saw significant losses.

Tech-heavy Nasdaq fell 22.7%, Dow and STOXX 600 confirmed a correction. All three major U.S. stock indexes had their largest weekly drops since 2020. Companies with China exposure, like Apple, saw declines. The Dow fell 5.50%, S&P 500 dropped 5.97%, and Nasdaq fell 5.82%. The pan-European STOXX index had its biggest daily loss since 2020.

Oil prices plummeted over 7% after China’s response to tariffs. Brent crude futures fell to $65.58, and U.S. crude futures dropped to $61.99. Despite positive job data, Fed Chair Powell warned of economic fallout from tariffs. JP Morgan raised recession chances. Dollar recovered against euro and yen after Powell’s remarks.

Investors turned to government bonds as stock market turmoil continued. U.S. 10-year Treasury note yield fell to a six-month low. German 10-year bond yield also dropped. Money market futures predicted larger Fed rate cuts. Traders bet on Bank of England and European Central Bank cuts. Investors considered moving to cash in uncertain environment.



Read more at Yahoo Finance: S&P 500 loses $5 trillion in two days in Trump tariff selloff