Wall Street Plunges Amid Trump’s Tariff Retaliation Against China
Wall Street experienced a significant downturn on April 4, 2025, as stocks plummeted following President Trump's decision to impose new tariffs on Chinese goods. The move was a direct retaliation against China's recent trade policies, causing futures to lose ground and major indices such as the Dow Jones Industrial Average to drop sharply by over 1900 points. The Nasdaq also felt the impact, teetering on the brink of entering a bear market.
The immediate reaction in the stock market reflects growing concerns about the escalation of trade tensions between the United States and China. Investors are worried about the potential for a full-blown trade war, which could have far-reaching consequences for the global economy. Analysts are closely monitoring the situation, with many expressing fears that the ongoing tariff battle could disrupt international trade flows and negatively affect economic growth.
The Trump administration's aggressive stance on tariffs comes at a time when the U.S. economy is already facing challenges from various fronts, including inflation and supply chain disruptions. As the situation develops, market participants are bracing for more volatility and uncertainty in the financial markets.
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When is the bear market?
A bear market occurs when a stock index falls more than 20% from a recent peak. The S & P 500 tipped back into correction territory, off more than 11%.
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 happened to the stock market today?
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%.
How are tariffs impacting the stock market?
U.S. STOCKS HIT HARD BY INITIAL TARIFF SHOCK And by the close of trading, the carnage was apparent as investors adjusted for possibly sharply lower economic and corporate earnings growth. The S&P 500 closed Thursday down 4.8%, the Dow Jones Industrial Average (^DJI) dropped 4%, and the Nasdaq Composite (^IXIC) shed 6%.
