Worst Stock Market Crash Since 2020 as Trump Imposes Sweeping Tariffs

On April 4, 2025, the US stock market experienced its worst single-day performance since 2020, driven largely by the announcement of new tariffs by President Donald Trump. The Dow Jones Industrial Average plummeted by 4 percent, or 1,679.39 points, to close at 40,545.93. The S&P 500 dropped by 4.8 percent, or 274.45 points, to finish at 5,396.52. The Nasdaq Composite, which is heavily weighted with technology stocks, fell by 6 percent, or 1,050.44 points, to 16,550.61, nearly slipping into bear market territory with an 18 percent drop from its peak.The key factor driving this market direction is the imposition of reciprocal tariffs on nearly all U.S. trading partners, with rates ranging from 10 percent to as high as 54 percent on certain countries. This move has sparked significant fears of a trade war and its potential impact on economic growth and inflation.Notably, the Consumer Discretionary, Technology, and Energy sectors were among the biggest decliners, with the Technology Select Sector SPDR falling by 6.8 percent and the Energy Select Sector SPDR tumbling by 7.9 percent. Retailers such as Nike, which saw its stock price plunge by 14.4 percent, and other globally reliant companies like Apple, Amazon, and Tesla, also suffered significant losses.The most actively traded stocks included major retailers and technology giants. Nike was one of the biggest losers, while there were few gainers in the broader market.Significant market-moving news includes the tariff announcement and Fed Chair Jerome Powell's indication that there are no imminent rate cuts, exacerbating market concerns about economic growth and inflation.Looking forward, pre-market futures are indicating further declines, with Dow futures trading 450 points lower, S&P 500 futures down 50 points, and Nasdaq futures down 125 points. Key events to watch for tomorrow include the release of Non-Farm Payrolls data for March and Jerome Powell's speech, which could provide further insights into the economic outlook. These events are crucial as market participants fear a near-term recession and potentially even stagflation in the U.S. economy.This content was created in partnership and with the help of Artificial Intelligence AI