Stock Market Plunges Amid Trump Tariffs, Nasdaq Confirms Bear Market
The U.S. stock market experienced a significant downturn today, with the Nasdaq confirming its entry into a bear market. This development comes in the wake of newly announced tariffs by former President Donald Trump, which have triggered widespread concern among investors and market analysts alike.
According to live updates from CNBC, the market saw its worst day since early 2020, with stocks sliding dramatically across major indices. The Nasdaq, in particular, has been hit hard, officially entering bear market territory as reported by Yahoo Finance. This downturn is largely attributed to the uncertainty and potential economic repercussions stemming from Trump's tariff policies.
NBC News and the Associated Press have provided extensive coverage on the situation, highlighting the global reaction to these tariffs. World leaders have expressed concerns over the potential for a trade war, which could further destabilize the already volatile market conditions.
As investors brace for more volatility, the focus remains on how these tariffs will impact not only the U.S. economy but also global trade relations in the coming months.
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How would tariffs affect the stock market?
Traders are concerned the tariffs will increase prices and weigh on growth in the US and abroad. The sweeping new tariffs announced by President Donald Trump triggered a slump in global stocks on Thursday, with US markets seeing their worst day since the impact of the Covid pandemic in 2020.
What is the US stock market?
The stock market is a trading network that connects investors looking to buy and sell stocks and their derivatives. An easy way to think about think about the stock market is to consider it as a network of stock exchanges where traders and investors buy and sell shares of publicly traded companies.
What are the tariffs going to do to the stock market?
Every 5 percentage point increase in the U.S. tariff rate cuts S&P 500 earnings per share by 1%-2%, Goldman Sachs chief U.S. equity strategist David Kostin estimates. This year's estimated 22.5 percentage point increase implies a potential 4.5%-9% cut in S&P 500 earnings from Trump tariffs.
How much did the stock market drop?
The Dow Jones Industrial Average fell 1,024 points, or 2.5%. The Nasdaq Composite fell 3.1%, while the S&P 500 lost 2.8%.
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