Markets plunge as Trump tariffs trigger worst Wall Street drop since 2020

U.S. markets fell sharply on Thursday in a broad selloff driven by heavy losses in major technology stocks and mounting fears over the economic impact of President Donald Trump’s newly announced tariffs. It was Wall Street’s worst day since the early months of the COVID-19 pandemic in 2020, according to preliminary data.

The Dow Jones Industrial Average closed down 1,679.39 points, or 3.98%, at 40,545.93. The S&P 500 fell 277.74 points, or 4.90%, to 5,393.23. The Nasdaq 100 dropped 5.4%, or more than 1,060 points.

Shares of major tech and automotive companies were hit especially hard, with Apple falling 9.25% to $203, Amazon down 8.98% to $178, Meta losing 8.96% to $531.60, Nvidia down 7.81% to $101.80, Tesla down 5.47% to $267.28, and Ford off 5.96% to $9.55.

According to MarketWatch, the group known as the “Magnificent Seven” was collectively on pace to lose over $1 trillion in market capitalization—the largest one-day valuation drop ever recorded for the group.

Nike also plunged 14.4% to $55.58, with analysts citing concerns over its manufacturing operations in Vietnam—one of the countries hit with the highest tariffs under the new trade policy.

The selloff followed Trump’s announcement on Wednesday of sweeping reciprocal tariffs, which will impose new import taxes on more than 180 countries and territories, including major trading partners such as the European Union, Japan, South Korea, and China.

The initial baseline tariffs are set to take effect after midnight Saturday, with higher, country-specific duties beginning April 9. The move sparked fears that the measures could stifle trade and slow global economic growth.

U.S. oil prices also reacted sharply, falling 6.6% on Thursday for the largest daily drop since July 2022. Analysts attributed the decline to expectations that the tariffs could reduce overall economic activity and weaken demand for fuel.

European markets were similarly rattled by the developments. According to CNN, the benchmark STOXX 600 index in Europe fell 2.57%, erasing its gains for the year. Germany’s DAX dropped 3%, France’s CAC 40 fell 3.31%—its worst day since July 2023—and Italy’s FTSE MIB plunged 3.6%.

Thursday’s market turmoil comes after Trump declared April 2 “Liberation Day,” calling the new tariffs a “declaration of economic independence.” He said said the new trade policy is designed to counter decades of unfair treatment and to revitalize domestic manufacturing.

Trump insisted the tariffs are not meant to punish foreign nations, but to correct what he described as catastrophic trade decisions by previous U.S. administrations.