In a stunning rout not seen since the early days of the pandemic in March 2020, U.S. markets plunged on Friday, with the S&P 500 falling 6% — its worst single-day performance in over four years. The Nasdaq Composite shed 5.8%, and the Dow Jones Industrial Average collapsed by more than 2,200 points, or 5.5%, as the fallout from President Trump’s sweeping tariff regime deepened.
The Russell 2000, tracking smaller-cap U.S. firms, dropped 4%, with every major sector finishing in the red.
“There was nowhere to hide,” said Bankrate’s Stephen Kates. “Every single sector posted a heavily negative day.”
Trump’s Trade War: Fallout Begins
The meltdown came just two days after Trump enacted reciprocal tariffs on more than 180 countries, triggering immediate retaliation from China and an explosion of market volatility.
Among the biggest Friday losers:
- Tesla (–10.4%)
- Caterpillar (–5.8%)
- Nvidia (–7.4%)
- Chevron, Boeing, 3M (each down 8%+)
- Apple, Visa, Goldman Sachs (–7%+)
A red-hot March jobs report failed to slow the sell-off, as analysts warned the data was now irrelevant given the trade war’s scale.
Panic Spreads Globally
Markets overseas followed suit, with:
- European indices nearing correction territory (–10% from recent highs)
- Asian exchanges tumbling across the board
Bond yields fell sharply—the 10-year Treasury yield hit 4%—while crude oil slipped 8%, signaling economic contraction fears.
From Growth Hopes to Recession Risks
Trump’s defiant stance—“MY POLICIES WILL NEVER CHANGE”—did little to calm nerves. JPMorgan now sees a 60% chance of a global recession, warning in a research note titled “There Will Be Blood” that the damage may only be beginning.
“Never have we seen a self-inflicted debacle of epic proportions like the Trump tariff slate over the last 36 hours,” said Wedbush’s Dan Ives.
China’s retaliatory 34% tariffs on all U.S. goods, set for April 10, added fuel to the fire.
Even traditionally hawkish analysts are now alarmed. Apollo’s chief economist Torsten Slok noted the economy could tip into recession by next quarter if household sentiment and business spending contract further.
What’s Next?
With the Nasdaq now 22% off December highs, and the S&P down 17% since February, the market’s fear is turning into full-blown crisis mode. Many executives and economists argue Trump’s push to restore U.S. manufacturing via tariffs is logistically impossible at the scale envisioned—and may backfire catastrophically.
Trump, meanwhile, remains unshaken.
“ONLY THE WEAK WILL FAIL,” he posted Friday afternoon.
But on Wall Street, it’s not just weakness investors fear—it’s a policy-driven free fall with no clear bottom.
Related: Trump Announces Tiered Tariffs on China, EU, India, Others — “This Is Just the Start”
‘No Winner In A Trade War’: China, EU And Others React To Trump’s Reciprocal Tariffs
This Is the Largest Tax Shock in Nearly 60 Years
Here’s What Will Cost More After Trump’s Tariffs: Coffee, Cars, More
