The U.S. stock market experienced a dramatic decline on Thursday morning, plunging in response to heightened trade tensions triggered by President Donald Trump’s sweeping reciprocal tariffs. The tariffs, which impose a baseline 10% tax on all imports and higher rates on goods from specific countries, have sparked fears of a global trade war, rattling investors and economists alike.
The Dow Jones Industrial Average fell by 1,543 points, closing at 40,682.77—marking one of its most significant single-day drops in recent months. Major technology stocks bore the brunt of the market instability. Apple Inc. (AAPL) saw its stock price dip to $218.27, while Tesla Inc. (TSLA) declined to $281.35. Amazon (AMZN) followed suit, trading at $203.26, alongside Microsoft (MSFT) at $392.12 and NVIDIA (NVDA) at $117.70.
Economists are warning of potential ripple effects from the tariffs, including higher inflation, slower economic growth, and a challenging investment landscape. “This is a critical moment for global trade and economic stability,” said one prominent economist. “The consequences could be far-reaching, impacting not only the U.S. economy but also markets worldwide.”
The international response has been swift and critical, with leaders accusing the tariffs of jeopardizing global trade relationships. China’s Ministry of Commerce has vowed to take retaliatory measures, further escalating tensions and raising uncertainty in the financial sector.
The market crash has reignited concerns over economic resilience amid policy-driven volatility. As investors scramble to adjust their strategies, analysts are keeping a close eye on whether this turbulence will extend into a prolonged downturn.
For further updates and expert analysis, visit MarketWatch or PBS News.
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