Market Mayhem: U.S. Stocks Dive Amid Trade War Fears

U.S. stocks plunged after President Trump's tariffs on major trade partners sparked fears of a trade war and global recession. Investors fled to safer assets, while technology and retail sectors suffered significant declines. As volatility rises, economic consequences and potential Federal Reserve actions remain key concerns.

In a dramatic turn on Thursday, U.S. stocks plummeted as President Donald Trump's sweeping tariffs on major trade partners intensified fears of a worldwide trade war and economic downturn. The stock market bloodbath affected both megacap technology companies and smaller firms alike.

Investors, spooked by the potential repercussions of Trump's 10% tariffs on most U.S. imports, sought refuge in the relative safety of government bonds. This marked a significant shift from the business-friendly policies that previously propelled markets to new heights. Responses from affected countries added to the market's turmoil, as China vowed retaliation and the European Union faced stiff duties.

The coming days promise volatility, with Wall Street's fear gauge, the CBOE Volatility Index, reaching a three-week high. Technology stocks took a heavy hit, with Apple losing significant ground due to the aggregated tariffs on China, its manufacturing base. Meanwhile, retail giants and banks also felt the strain, highlighting the extensive reach of the ongoing economic uncertainty.

(With inputs from agencies.)