Wall Street Sees Worst Drop Since 2020; S&P 500 Loses $2.4T
Wall Street experienced its steepest drop since the 2020 pandemic on Thursday, following President Donald Trump’s announcement of sweeping tariffs.
Tariffs were applied on 180 countries and territories—measures with the potential to disrupt the global economy and spark a widespread trade war.
The Dow Jones Industrial Average fell 3.98% to 40,545.93, while the S&P 500 plunged 4.84% to 5,396.52, wiping out $2.4 trillion in market capitalization in its worst single-day decline since the pandemic.
Losses were broad-based. The Nasdaq Composite, heavily weighted with tech giants, tumbled 5.97% to 16,550.61, and the Russell 2000, representing small and mid-sized companies, sank 6.59% to 1,910.55.
Investor Sentiment Shifts on Trump Policies
Once seen as business-friendly, Trump’s return to aggressive trade policy has shaken investor confidence. The new tariffs mark a sharp turn that could impact global supply chains and corporate profits.
China, set to face a 54% net tariff on exports to the U.S. starting April 9, vowed to retaliate. The European Union and the United Kingdom will also be hit—with tariffs of 20% and 10%, respectively.
Markets reacted swiftly, with the CBOE Volatility Index (VIX)—Wall Street’s fear gauge—spiking to a three-week high.
Tech Giants Take the Hardest Hit
Leading the sell-off was Apple, down 9.25%, as the company faces new barriers in China, its second-largest iPhone market. Amazon dropped 8.98% and Nvidia slid 7.81%.
Warren Buffett Moves Ahead of the Storm
A Fortune report highlighted that Warren Buffett, CEO of Berkshire Hathaway, sold $134 billion in stocks during 2024 and ended the year with a massive $334 billion in cash reserves—nearly double from the previous year.
Buffett’s strategy once again underscores his ability to position ahead of major market turbulence, reducing his company’s equity exposure just in time.
ABOUT THE AUTHOR
See More
Sidebar rates
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals