S&P 500 Loses $5 Trillion in Two Days on Trump’s Tariff Selloff
The Nasdaq confirmed it was in a bear market, ending more than 20 below its record high close, while oil prices and other commodities plunged.
That $ 5 trillion loss marked a record two-day decline for the S&P 500 benchmark, exceeding a two-day loss of $3.3 trillion in March 2020 when the pandemic ripped across global markets, according to LSEG data compiled by Reuters.
Responding to Trump’s tariffs, China on Friday said it would impose additional levies of 34 per cent on American goods, confirming investor fears that a full-blown global trade war is underway and that the global economy may be at risk of a recession.
Trump slapped a 10 per cent tariff on most U.S. imports and much higher levies on dozens of countries, erecting the steepest trade barriers in more than 100 years.
“For those investors who were sure it was just a negotiation – while that still may be true at some point – it’s getting awfully deeper into the details and more dangerous for companies,” Meckler added.
S&P 500 companies suffered their biggest one-day loss in value since the emerging coronavirus pandemic sent global markets into a tailspin on March 16, 2020. S&P 500 companies suffered their biggest one-day loss in value since the emerging coronavirus pandemic sent global markets into a tailspin on March 16, 2020.
Companies with exposure to China fell across the board, with Apple dropping 7.3 per cent . The chipmakers index sank 7.6 per cent . Bank and energy shares dropped amid the recession fears, the Reuters report said.
The S&P 500 fell 322.44 points, or 5.97 per cent, to 5,074.08 and the Nasdaq Composite fell 962.82 points, or 5.82 per cent, to 15,587.79.
Also, Morgan Stanley Capital International (MSCI), a gauge of stocks across the globe, fell 43.35 points, or 5.37 per cent, to 764.29, and was set for its biggest weekly percentage drop since 2020 at the weekend,
Earlier, investment bank JP Morgan said it was forecasting a 60 per cent chance of the global economy entering a recession by year-end, up from 40 per cent previously.
The U.S. dollar recovered against the euro and yen, with Powell signalling a cautiou
s tone on future easing. The dollar index was last up 0.7 per cent on Friday after its biggest fall since November 2022 on Thursday.