S&P 500 suffers $2 trillion loss as tariff turmoil escalates
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Financial markets endured a punishing session, with the S&P 500 tumbling 4.8% to its worst single-day drop since March 2020. The index has now fallen 12% from its peak in February, erasing an estimated $2 trillion in market value. Traders faced abrupt losses that starkly contrasted with the celebratory tone U.S. President Donald Trump tried to project, referring to his latest tariff salvo as a success while minimizing the deepening correction.
Investors found little comfort in the President’s upbeat remarks. He insisted economic gains were imminent and that the world would soon line up to negotiate. Instead, stocks slid into widespread liquidation, transforming “Liberation Day” into an unwelcome “Liquidation Day.” The Dow Jones Industrial Average shed 1,679 points, or 4%, entering a 10% drawdown from recent highs. Technology shares fared even worse. The Nasdaq Composite lost 6%, reflecting skepticism about growth prospects and valuations under intensifying trade tensions. Evidence of lingering volatility emerged in after-hours trading, where S&P 500 futures still pointed lower, down 0.2%.
The abrupt sell-off underscores mounting fears that tariffs will disrupt global supply chains, dent corporate earnings, and provoke retaliation from major economic partners. While some investors hold out hope for a negotiated resolution, the abrupt plunge in equity values signals a profound sense of uncertainty. Market participants now look to upcoming policy statements and international responses to gauge whether risk appetite can recover or whether further downside lies ahead.
Investors found little comfort in the President’s upbeat remarks. He insisted economic gains were imminent and that the world would soon line up to negotiate. Instead, stocks slid into widespread liquidation, transforming “Liberation Day” into an unwelcome “Liquidation Day.” The Dow Jones Industrial Average shed 1,679 points, or 4%, entering a 10% drawdown from recent highs. Technology shares fared even worse. The Nasdaq Composite lost 6%, reflecting skepticism about growth prospects and valuations under intensifying trade tensions. Evidence of lingering volatility emerged in after-hours trading, where S&P 500 futures still pointed lower, down 0.2%.
The abrupt sell-off underscores mounting fears that tariffs will disrupt global supply chains, dent corporate earnings, and provoke retaliation from major economic partners. While some investors hold out hope for a negotiated resolution, the abrupt plunge in equity values signals a profound sense of uncertainty. Market participants now look to upcoming policy statements and international responses to gauge whether risk appetite can recover or whether further downside lies ahead.