The Dow Jones Industrial Average plummeted by 2,200 points on Friday (April 4), marking a 5.5% decline as the S&P 500 lost 10% over two days. This steep drop follows President Donald Trump‘s announcement of increased tariffs on Chinese goods, which has intensified a global trade war. The Nasdaq Composite also fell by 5.82%, entering a bear market for the first time since 2022.
China retaliated with 34% tariffs on all U.S. imports, further escalating tensions. The tariffs have sparked fears of a recession, with JPMorgan analysts estimating a 60% chance of a global economic downturn this year. Federal Reserve Chair Jerome Powell warned of potential inflation and slower economic growth due to the tariffs.
Despite a brief rally after President Trump mentioned a positive call with Vietnam’s general secretary, stocks fell back as investors worried about the economic impact of the tariffs. Tech companies, heavily reliant on international supply chains, were among the hardest hit. Apple, Nvidia, and Tesla saw significant declines.
Safe havens like government bonds and gold saw increased investment, with gold prices reaching record highs before settling. The ongoing trade tensions have raised concerns about the future of global trade and economic stability.
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