The results of the session indicate a sharp downturn in the stock market, with the Dow Jones Industrial Average losing 3.98%, the Nasdaq dropping 5.97%—its worst performance since March 2020—and the broad S&P 500 declining by 4.84%, marking its steepest drop since June 2020.
The devaluation of stocks in today’s session is estimated to be in the billions of dollars.
The stock exchange was shaken by the new tariff rates introduced on Wednesday by President Trump, which triggered a wave of panic across most markets.
These tariff hikes are particularly burdensome for exporters in Asia and the European Union (EU), raising threats of retaliation that could choke the targeted countries’ economies, as well as that of the United States.
The White House’s aggressive move, unmatched since the 1930s, proposes additional tariff rates of 10% and increases for certain countries: 20% for the EU, 34% for China, 24% for Japan, and 31% for Switzerland.
“The tariffs are higher and more severe than anticipated, and it will take time to determine their exact effects, not only on the economy but also on corporate profits,” commented Tom Cahill, an analyst at Ventura Wealth Management.
“Corporate profit growth will be much weaker than Wall Street had anticipated,” he observed.
Trump presented the new tariffs as a magical remedy capable of reindustrializing the country, rebalancing the trade deficit, and erasing it altogether, contrary to the predictions of most economists who foresee harmful consequences for the American economy.
“Demand will be less strong than predicted because many consumers will reconsider their options and make difficult decisions,” Cahill noted. “Consumers will start saving more, as they are filled with doubts about the future,” he predicted.
“The Federal Reserve will return to the spotlight, and if unemployment rises and economic growth weakens, it must make more significant rate cuts than the two predicted so far,” elaborated Angelo Kourkafas from Edward Jones.
Most stocks saw significant devaluations.
World’s top market cap, Apple experienced its worst session in five years, retreating 9.25%, which translated to a 300 billion dollar drop in market capitalization.
However, Dell decreased by 19.00%, HP by 14.74%, Broadcom by 10.51%, and Nvidia by 7.81%.
In the textile industry, heavily reliant on production in China and Vietnam with a tariff increase of 34% and 46%, adding to existing tariffs, losses were exemplified by Gap (-20.38%), Ralph Lauren (-16.27%), Nike (-14.47%), and Lululemon.
“If the tariffs persist for a prolonged period, I think the stock market could decline substantially,” predicted Cahill.
