Wall Street Tumbles Amid Trump’s Tariff Bombshell: Nasdaq Nosedives Over 5%, S&P Posts Sharpest Drop Since 2022

New York: In a sweeping escalation of trade tensions, U.S. equity markets were rocked on Thursday following President Donald Trump’s surprise announcement of broad-based tariffs targeting all major trading partners. The aggressive policy move triggered a market-wide rout, erasing hundreds of billions in market capitalization within hours.

By mid-morning trading, the S&P 500 had plummeted 4.07%, its sharpest single-day fall since 2022. The Nasdaq Composite plunged 5.21%, weighed down heavily by tech majors, while the Dow Jones Industrial Average dropped 3.41%, reflecting widespread investor unease.

Trump’s 'Liberation Day' Tariffs Shake Global Trade Sentiment

President Trump’s announcement late Wednesday introduced a minimum 10% tariff on all imports, with stiffer duties aimed at nations with sizable trade surpluses with the U.S. Markets were blindsided by the scope and speed of the plan, which Trump framed as an economic liberation strategy.

The policy immediately drew international rebuke and set off warnings from trade analysts and business groups. “This is the most severe trade action by any modern president,” said Daniel Weisz, chief economist at BrookBridge Capital. “The markets are signaling serious concern about global economic fallout.”

Bond Yields Slide as Investors Rush to Safety

The panic in equities triggered a flight to the safety of government bonds, driving the yield on 10-year U.S. Treasuries below 4%, a level not seen since October 2024. Yields dropped as much as 13 basis points during the session, with global bond markets reflecting similar anxieties.

European and UK government bonds rallied as investors braced for a slowdown in international trade and economic growth. The move also sparked speculation about potential Federal Reserve intervention to stabilize financial markets.

Tech and Retail Among the Hardest Hit

Apple Inc. led losses among megacap stocks, shedding 8%, as analysts flagged concerns over a potential 54% aggregate tariff on Chinese-made goods, a critical link in Apple’s global supply chain.

Other major decliners included:

• Nvidia: Down 5.6%

• Tesla: Down 5.73%

• Alphabet (Google): Off 3.10%

• Microsoft: Lower by 3%

Retail giants weren’t spared either. Nike slumped 11%, while Ralph Lauren tumbled 12%, both on fears of rising costs and declining consumer sentiment.

Financials and Energy Buckle Under Pressure

Major banks with significant exposure to global markets took a hit as well. Citigroup and Bank of America fell over 8% each, while JPMorgan Chase dropped 4.5%. The broader financial sector reeled from rising fears of a recessionary environment ahead.

Energy stocks were also bruised after crude oil prices tanked on a double whammy: Trump’s tariffs denting demand outlook and OPEC signaling a production hike.

• West Texas Intermediate (WTI) fell 7.4%, slipping below $67 per barrel.

• Brent crude dropped 6.9%, sliding under the $70 mark.

• ExxonMobil and Chevron lost over 3.5% each.

Precious Metals Pull Back From Highs

Even safe-haven assets like gold saw a reversal. After hitting a record high of $3,167.57 earlier in the day, spot gold fell 1.1% to $3,098.73, with U.S. gold futures closing down 1.4%.
Silver, platinum, and palladium all followed suit, falling 5.6%, 3%, and 3.3% respectively.

Outlook: Turbulence Ahead?

Thursday’s market performance underscores investor unease over what some analysts are calling “the most unpredictable U.S. economic moment in a decade.” With retaliatory measures already hinted at by Canada, Australia, and the EU, global markets may be in for continued volatility in the weeks to come.

“This is not just a market correction,” said Miranda Powell of StratEdge Asset Management. “This is a real-time repricing of risk in a world where trade rules can change overnight.”