Trump's tariffs causing stock market to plummet, sparking fears of trade war

From Yahoo Finance: 2025-04-04 16:52:00

Stocks sank on Friday as President Trump’s tariffs sparked fears of a trade war. Markets lost $2.5 trillion on Thursday, and China announced 34% tariffs on US products. The Dow dropped 5.5%, the S&P 500 sank 6%, and the Nasdaq entered a bear market. Trump’s aggressive tariff plan caused chaos.

Morgan Stanley’s chief investment officer warns of recession risk if tariffs persist, projecting the S&P 500 to end at 4,600. RBC Capital Markets lowered its year-end S&P 500 target to 5,550. The administration shows no signs of backing down, with Wall Street unsure of a swift resolution to the tariff conflict.

Read more: Wall Street fears Trump’s tariffs will wipe out 2024’s stock market gains