Market Mayhem: Tariffs Trigger Historic Stock Plunge

U.S. stock markets experienced the largest daily percentage drop since 2020, influenced by new trade tariffs from President Trump sparking fears of global recession. Major indices such as the Nasdaq, S&P 500, and Dow Jones faced significant declines, while investors sought refuge in safe-haven assets amidst escalating trade tensions.

Major U.S. stock indexes saw their sharpest daily percentage decreases since 2020 on Thursday, as aggressive trade tariffs imposed by U.S. President Donald Trump stoked fears of a looming global recession. This economic uncertainty prompted investors to gravitate towards safe-haven assets like bonds and the yen.

The S&P 500 companies lost $2.4 trillion in market value, registering their most severe one-day loss since the height of the coronavirus pandemic in March 2020. The Nasdaq Composite Index led the declines on Wall Street with a 5.97% drop, while the S&P 500 and Dow Jones Industrial Average also logged their largest daily percentage falls since June 2020.

Traders' anxiety was fueled by a new baseline 10% tariff on imported goods along with reciprocal tariffs on multiple countries, raising fears of a potential global economic slowdown and higher inflation rates. Apple's shares fell 9.2% owing to tariffs on China, the core of its manufacturing base. The technology and energy sectors suffered substantial losses, with the S&P 500 technology index falling 6.9% and the energy sector sinking 7.5% amid falling oil prices.

(With inputs from agencies.)