Dow, S&P 500 Plunge on Tariff News, Nasdaq Composite Sinks 5.97%

Key moments

Trade War Fears Trigger Market Chaos

President Trump’s newly enacted tariff measures triggered a dramatic sell-off across Wall Street, reminiscent of the market turmoil seen during the early stages of the COVID-19 pandemic. The Dow Jones Industrial Average suffered a significant decline, shedding over 1,600 points during a near 4% plunge, marking the largest drop recorded since June 2020.

The S&P 500, representing the broader market, fell 4.84%, while the Nasdaq Composite also faced a brutal session and experienced a near 6% tumble, translating to a single-day loss of over 1,000 points not seen since March 2020. This widespread sell-off affected a vast majority of the S&P 500’s constituents, with over 400 stocks ending the day in the red.

The market’s reaction was driven by President Trump’s announcement of a global 10% baseline tariff, coupled with additional, higher duties imposed on specific countries deemed to have unfair trade practices. This two-tiered tariff system goes into effect in early April.

The technology sector, particularly semiconductor manufacturers, was heavily affected by the news. Nvidia, a key player in artificial intelligence chip production, saw its stock price decline by 7.81%, reflecting the market’s apprehension regarding the potential disruption of global supply chains. Other chip makers also experienced significant losses.

Furthermore, retailers heavily reliant on imported goods faced substantial losses. Best Buy, Target, and Dollar Tree all witnessed double-digit percentage drops, as the tariffs had an immediate impact on consumer-facing businesses. The financial services sector was also significantly affected, with major institutions like Bank of America, American Express, and Goldman Sachs experiencing sharp declines. Tech hardware companies such as Dell Technologies and HP Inc. were not spared either, falling 18.99% and 14.71%, respectively.