Trump Tariff Warning Causes $2 Trillion Market Fall at Wall Street.
After the President proposed to raise tariffs by 50% there was a surge in uncertainty that rocked Wall Street. The news that this new tariff rates would be raised actually sent the stock market into a huge crash. The raise was on imports of companies that he said are using the U. S. as a bargaining chip.
Ultimately, the market made the largest drop of the day – more than $2 trillion in market value in S&P, according to trade figures – and its largest one-day dive since the pandemic crash in 2020. Shares in technology groups Nasdaq and NASDAQ plummeted, weighed down by fears about global growth and the start of a trade war.
Even though the tariff announcement from President Trump was one part of a larger economic agenda, investors treated it as a serious signal, particularly considering investor sentiment was already fragile. The worst-hit companies were ones with heavy global exposure—mostly in automotive, tech and manufacturing sectors—including Apple and the latest car maker, Tesla, a sharp decline.
With what are already wildly unstable market conditions- rising inflation and interest rate fears-investors might have hoped for a stabilization and not a geo-political threat festering in the balance. “This isn’t just rhetoric anymore, ” said one Wall Street strategist. “The markets are starting to price in a real possibility of escalating trade tension.”
But there’s no other reason to get hesitant about the added uncertainties, as the economic strategy formulated by the central bank is clearly identifiable with these actions. Traders are thinking of a higher risky week ahead and watching Wall Street closely.
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